Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Entity Registrant Name | RADWARE LTD. |
Entity Central Index Key | 0001094366 |
Amendment Flag | false |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 000-30324 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 22 Raoul Wallenberg Street |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 6971917 |
Entity Address Country | IL |
Title of 12(b) Security | Ordinary Shares,NIS 0.05 par value per share |
Trading Symbol | RDWR |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 44,306,891 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Auditor Firm Id | 1281 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Guy Avidan |
Entity Address, Address Line One | 22 Raoul Wallenberg Street |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 6971917 |
Entity Address Country | IL |
City Area Code | 972-3 |
Local Phone Number | 7668666 |
Contact Personnel Fax Number | 7668982 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 46,185 | $ 92,513 |
Marketable securities | 44,180 | 39,497 |
Short-term bank deposits | 207,679 | 155,879 |
Trade receivables, net of allowance for credit losses of $174 at December 31, 2022 and 2021 | 17,752 | 13,191 |
Other current assets and prepaid expenses | 7,196 | 8,046 |
Inventories | 11,428 | 11,580 |
Total current assets | 334,420 | 320,706 |
LONG-TERM INVESTMENTS: | ||
Marketable securities | 90,148 | 98,224 |
Long-term bank deposits | 43,765 | 79,708 |
Other assets | 2,146 | 2,454 |
Total long-term investments | 136,059 | 180,386 |
Property and equipment, net | 21,068 | 20,240 |
Operating lease right-of-use assets | 23,078 | 24,829 |
Intangible assets, net | 19,686 | 10,731 |
Goodwill | 68,008 | 41,144 |
Other long-term assets | 41,269 | 37,334 |
Total assets | 643,588 | 635,370 |
CURRENT LIABILITIES | ||
Trade payables | 6,464 | 4,310 |
Deferred revenues | 108,243 | 99,922 |
Operating lease liabilities | 4,685 | 5,090 |
Employees and payroll accruals | 32,380 | 26,284 |
Other payables and accrued expenses | 12,263 | 30,281 |
Total current liabilities | 164,035 | 165,887 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 72,219 | 67,065 |
Operating lease liabilities | 19,461 | 22,360 |
Other long-term liabilities | 19,430 | 10,065 |
Total long-term liabilities | 111,110 | 99,490 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Share capital - | ||
Ordinary shares of NIS 0.05 par value - Authorized: 90,000,000 at December 31, 2022 and 2021; Issued: 61,345,900 and 60,641,047 shares at December 31, 2022 and 2021, respectively; Outstanding: 44,306,891 and 45,871,957 shares at December 31, 2022 and 2021, respectively | 732 | 730 |
Additional paid-in capital | 498,168 | 471,173 |
Treasury shares 17,039,009 and 14,769,090 of ordinary shares at December 31, 2022 and 2021, respectively | (303,299) | (243,023) |
Accumulated other comprehensive loss | (4,844) | (455) |
Retained earnings | 141,402 | 141,568 |
Total Radware Ltd. shareholders' equity | 332,159 | 369,993 |
Non-controlling interest | 36,284 | 0 |
Total shareholders’ equity | 368,443 | 369,993 |
Total liabilities and shareholders’ equity | $ 643,588 | $ 635,370 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2022 ₪ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 ₪ / shares shares |
Statement of Financial Position [Abstract] | |||
Allowance for credit losses | $ | $ 174 | ||
Ordinary shares, par value | ₪ / shares | ₪ 0.05 | ₪ 0.05 | |
Ordinary shares, shares authorized | 90,000,000 | 90,000,000 | |
Ordinary shares, shares issued | 61,345,900 | 60,641,047 | |
Ordinary shares, shares outstanding | 44,306,891 | 45,871,957 | |
Treasury stock, ordinary shares | 17,039,009 | 14,769,090 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 293,426 | $ 286,496 | $ 250,027 |
Cost of revenues: | |||
Total cost of revenues | 53,884 | 52,446 | 45,084 |
Gross profit | 239,542 | 234,050 | 204,943 |
Operating expenses, net: | |||
Research and development, net | 86,562 | 74,098 | 66,836 |
Sales and marketing | 126,533 | 119,842 | 113,015 |
General and administrative | 29,786 | 21,885 | 18,924 |
Total operating expenses, net | 242,881 | 215,825 | 198,775 |
Operating income (loss) | (3,339) | 18,225 | 6,168 |
Financial income, net | 8,052 | 4,407 | 7,796 |
Income before taxes on income | 4,713 | 22,632 | 13,964 |
Taxes on income | 4,879 | 14,821 | 4,328 |
Net income (loss) attributable to Radware Ltd.’s shareholders | $ (166) | $ 7,811 | $ 9,636 |
Basic net earnings (loss) per share | $ 0 | $ 0.17 | $ 0.21 |
Diluted net earnings (loss) per share | $ 0 | $ 0.16 | $ 0.2 |
Weighted average shares used to compute net income per share, Basic | 44,943,168 | 45,919,835 | 46,460,974 |
Weighted average shares used to compute net income per share, Diluted | 44,943,168 | 47,503,091 | 47,739,540 |
Products [Member] | |||
Revenues: | |||
Total revenues | $ 172,161 | $ 170,438 | $ 132,934 |
Cost of revenues: | |||
Total cost of revenues | 43,014 | 42,191 | 34,645 |
Services [Member] | |||
Revenues: | |||
Total revenues | 121,265 | 116,058 | 117,093 |
Cost of revenues: | |||
Total cost of revenues | $ 10,870 | $ 10,255 | $ 10,439 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (166) | $ 7,811 | $ 9,636 |
Unrealized gains (losses) on marketable securities before tax: | |||
Changes in unrealized gains (losses) | (5,046) | (2,999) | 339 |
Less: reclassification adjustments for gains included in net income (loss) | 68 | 438 | 144 |
Changes in unrealized gains (losses) | (3,427) | 0 | (1,122) |
Less: reclassification adjustments for gains included in net income (loss) | (2,795) | 0 | (1,122) |
Other comprehensive income (loss) before tax | (5,610) | (2,561) | 483 |
Unrealized gains (losses) on marketable securities tax: | |||
Income tax benefits (income tax expenses) related to components of other comprehensive income (loss) | 1,145 | 589 | (111) |
Income tax benefits (income tax expenses) related to components of other comprehensive income (loss) | 76 | 0 | 0 |
Income tax benefits (income tax expenses) related to components of other comprehensive income (loss) | 1,221 | 589 | (111) |
Other comprehensive income (loss), net of tax | (4,389) | (1,972) | 372 |
Comprehensive income (loss) attributable to Radware Ltd.’s shareholders | $ (4,555) | $ 5,839 | $ 10,008 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Share Capital [Member] | Additional paid-in capital [Member] | Treasury stock, at cost [Member] | Accumulated other comprehensive income (loss) [Member] | Retained earnings [Member] | Total equity [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2019 | $ 710 | $ 414,581 | $ (145,226) | $ 1,145 | $ 124,121 | $ 395,331 | $ 0 | $ 395,331 |
Balance, shares at Dec. 31, 2019 | 46,987,757 | |||||||
Repurchase of ordinary shares | $ 0 | 0 | (45,326) | 0 | 0 | (45,326) | 0 | (45,326) |
Repurchase of ordinary shares, shares | (1,953,960) | |||||||
Issuance of shares upon exercise of shares options and vesting of restricted shares units | $ 11 | 11,892 | 0 | 0 | 0 | 11,903 | 0 | 11,903 |
Issuance of shares upon exercise of stock options and vesting of restricted shares units, shares | 1,353,092 | |||||||
Stock based compensation | $ 0 | 16,545 | 0 | 0 | 0 | 16,545 | 0 | 16,545 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | 372 | 0 | 372 | 0 | 372 |
Net income | 0 | 0 | 0 | 0 | 9,636 | 9,636 | 0 | 9,636 |
Balance at Dec. 31, 2020 | $ 721 | 443,018 | (190,552) | 1,517 | 133,757 | 388,461 | 0 | 388,461 |
Balance, shares at Dec. 31, 2020 | 46,386,889 | |||||||
Repurchase of ordinary shares | $ 0 | 0 | (52,471) | 0 | 0 | (52,471) | 0 | (52,471) |
Repurchase of ordinary shares, shares | (1,871,119) | |||||||
Issuance of shares upon exercise of shares options and vesting of restricted shares units | $ 9 | 10,581 | 0 | 0 | 0 | 10,590 | 0 | 10,590 |
Issuance of shares upon exercise of stock options and vesting of restricted shares units, shares | 1,356,187 | |||||||
Stock based compensation | $ 0 | 17,574 | 0 | 0 | 0 | 17,574 | 0 | 17,574 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | (1,972) | 0 | (1,972) | 0 | (1,972) |
Net income | 0 | 0 | 0 | 0 | 7,811 | 7,811 | 0 | 7,811 |
Balance at Dec. 31, 2021 | $ 730 | 471,173 | (243,023) | (455) | 141,568 | 369,993 | 0 | $ 369,993 |
Balance, shares at Dec. 31, 2021 | 45,871,957 | 45,871,957 | ||||||
Repurchase of ordinary shares | $ 0 | 0 | (60,276) | 0 | 0 | (60,276) | 0 | $ (60,276) |
Repurchase of ordinary shares, shares | (2,269,919) | |||||||
Issuance of shares upon exercise of shares options and vesting of restricted shares units | $ 2 | 2,032 | 0 | 0 | 0 | 2,034 | 0 | 2,034 |
Issuance of shares upon exercise of stock options and vesting of restricted shares units, shares | 704,853 | |||||||
Stock based compensation | $ 0 | 24,963 | 0 | 0 | 0 | 24,963 | 1,284 | 26,247 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | (4,389) | 0 | (4,389) | 0 | (4,389) |
Issuance of Preferred A shares in subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 35,000 | 35,000 |
Net income | 0 | 0 | 0 | 0 | (166) | (166) | 0 | (166) |
Balance at Dec. 31, 2022 | $ 732 | $ 498,168 | $ (303,299) | $ (4,844) | $ 141,402 | $ 332,159 | $ 36,284 | $ 368,443 |
Balance, shares at Dec. 31, 2022 | 44,306,891 | 44,306,891 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (166) | $ 7,811 | $ 9,636 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 11,692 | 10,196 | 10,559 |
Share-based compensation | 27,353 | 17,574 | 16,545 |
Gain on sale of marketable securities | (68) | (438) | (639) |
Amortization of premiums, accretion of discounts and accrued interest on marketable securities, net | 2,345 | 2,720 | 931 |
Changes in accrued interest on bank deposits | (2,480) | 2,424 | (1,210) |
Increase in accrued severance pay, net | 219 | 468 | 202 |
Decrease (increase) in trade receivables, net | (4,561) | 3,657 | 5,762 |
Changes in deferred income taxes, net | (1,986) | (3,466) | 333 |
Increase in other assets and prepaid expenses | (374) | (4,625) | (5,217) |
Decrease in inventories | 152 | 2,355 | 5 |
Increase (decrease) in trade payables | 2,154 | 428 | (2,433) |
Increase in deferred revenues | 13,475 | 20,063 | 16,797 |
Increase (decrease) in other payables and accrued expenses | (14,054) | 12,238 | 11,305 |
Operating lease right-of-use assets | 6,033 | 5,532 | 5,593 |
Operating lease liabilities | (7,586) | (5,163) | (4,304) |
Net cash provided by operating activities | 32,148 | 71,774 | 63,865 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (8,814) | (5,603) | (8,671) |
Proceeds from (investing in) other long-term assets | 35 | 49 | (110) |
Proceeds from (investing in) bank deposits | (13,377) | 24,448 | (23,878) |
Purchase of marketable securities | (49,217) | (88,300) | (32,981) |
Proceeds from maturity of marketable securities | 34,589 | 59,980 | 29,452 |
Proceeds from sale of marketable securities | 10,766 | 17,275 | 21,820 |
Payment for the business acquisition of SecurityDAM Ltd. | (30,000) | 0 | 0 |
Net cash provided by (used in) investing activities | (56,018) | 7,849 | (14,368) |
Cash flows from financing activities: | |||
Proceeds from exercise of share options | 2,034 | 10,590 | 11,903 |
Payment of deferred consideration related to acquisition | 0 | 0 | (2,054) |
Proceeds from issuance of Preferred A shares in subsidiary | 35,000 | 0 | 0 |
Repurchase of ordinary shares | (59,492) | (52,471) | (45,326) |
Net cash used in financing activities | (22,458) | (41,881) | (35,477) |
Increase (decrease) in cash and cash equivalents | (46,328) | 37,742 | 14,020 |
Cash and cash equivalents at the beginning of the year | 92,513 | 54,771 | 40,751 |
Cash and cash equivalents at the end of the year | 46,185 | 92,513 | 54,771 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for taxes on income | 18,069 | 2,748 | 1,314 |
Non-cash investing activities: | |||
Right-of-use assets recognized with corresponding lease liabilities | $ 4,282 | $ 2,538 | $ 15,272 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Radware Ltd. (the "Company"), an Israeli company commenced operations in April 1997. The Company and its subsidiaries (the "Group") are engaged in the development, manufacture and sale of cyber security and application delivery solutions for cloud, on-premise, and Software Defined Data Centers (“SDDC”). The Group’s solutions secure the digital experience by providing infrastructure, application, and corporate IT protection and availability services to enterprises globally. The Group’s solutions are deployed by, among others, enterprises, carriers and cloud service providers worldwide. b. On February 17, 2022, the Company acquired all of the technology and other intangible assets from SecurityDAM Ltd., which was a related party and the sole single-managed security service provider of the Company for a total consideration of (1) $30,000 in cash and (2) additional contingent consideration of up to $12,500 based on the revenues of the Company’s cloud DDoS protection service subsequent to the acquisition. For additional details, see also Note 3 and Note 17b. During 2021 and 2020, the Group depended on SecurityDAM Ltd. as a sole single-managed security service provider, which was a related party, to provide services as part of its protection services. c. On January 18, 2022, the Company established SkyHawk (CNP) Security Ltd. ("Skyhawk") and transferred to Skyhawk all of the intangible assets related to the Cloud Native Protector business. On April 29, 2022, Skyhawk entered into Series A Preferred Share Agreement (the "Agreement"). According to the Agreement, Skyhawk issued 31,210,708 Preferred A Shares NIS 0.001 par value each for a total consideration of $35,000. During the year ended December 31, 2022, Skyhawk was engaged mainly in research and development activities and recorded immaterial revenues. For additional details, see also Note 2y. d. The Company has established wholly-owned subsidiaries in various countries worldwide. The Company's subsidiaries are engaged primarily in sales, marketing and support activities of its core products. e. The Group primarily relies on two original design manufacturers to supply certain hardware platforms and components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Group will be required to seek alternative sources of supply. A change in suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company's operation and financial performance. f. Following Russia’s invasion of Ukraine during February 2022, the United States and other countries imposed economic sanctions and severe export control restrictions against Russia and Belarus, and the United States and other countries could impose wider sanctions and export restrictions and take other actions should the conflict further escalate. Any exports or sales into Russia and Belarus may be impacted by these restrictions. Monitoring and ensuring compliance with these complex laws is challenging. The Group undertakes precautions to ensure that the Group or the Group’s customers comply with all relevant sanctions-related regulations, and any failure by the Group or the Group’s customers to comply with such laws and regulations could have negative consequences for the Group, including reputational harm, government investigations and penalties. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. b. Financial statements in United States dollars: A majority of the Group's revenues are denominated in United States dollars ("dollar" or "U.S. dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs are denominated in dollar. The Company's management believes that the dollar is the primary currency of the economic environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standards Codification ("ASC") No. 830 "Foreign Currency Matters". All transaction gains and losses from the re-measured monetary balance sheet items are reflected in the consolidated statements of income (loss) as financial income or expenses, as appropriate. c. Principles of consolidation: The consolidated financial statements include accounts of the Company's wholly-owned subsidiaries as well as Skyhawk in which the Company controls the majority voting rights. All intercompany transactions and balances have been eliminated upon consolidation. Non-controlling interests of subsidiaries represents the amount of funds received in exchange for the non-controlling interests in Skyhawk and share-based compensation expenses for equity awards of certain subsidiaries granted to employees of those subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. For additional details, see also Note 2y. d. Cash equivalents: Cash equivalents are short-term highly-liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition. e. Bank deposits: Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost, which approximate market values. Bank deposits with maturities of more than one year are included in long-term bank deposits. Long-term bank deposits are stated at cost, which approximates market values. f. Investment in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, "Investments - Debt Securities". Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument's underlying contractual maturity date and the entity's expectations of sales and redemptions in the following year. The Company classified all of its securities as available-for-sale marketable securities. Debt securities are carried at fair value, with the unrealized gains and losses reported in "Accumulated other comprehensive income (loss)" in shareholders' equity. Realized gains and losses on sales of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities are included in financial income, net in the Company’s consolidated statements of income (loss). Commencing January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13, Topic 326 which modified the other than temporary impairment model for available-for-sale debt securities. Available-for-sale securities are periodically evaluated for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor's ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income, net when the impairment is incurred. Unrealized non-credit related losses and unrealized gains, net of tax, are reported as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets until realized. Credit loss impairments for the years ended December 31, 2022, 2021 and 2020 were immaterial. g. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory write-off is provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories and discontinued products. Inventory write-offs totaled $397, $2,028 and $616 in 2022, 2021 and 2020, respectively, and have been included in cost of revenues of products in the Company’s consolidated statements of income (loss). Cost is determined as follows: Raw materials and components - using the "first-in, first-out" method. Work-in-progress and finished products - raw materials as above with the addition of subcontracting costs, calculated on the basis of direct subcontractors costs and with direct overhead costs. The Company assesses the carrying value of its inventory for each reporting period to ensure inventory is reported at the lower of cost or net realizable value in accordance with ASC No. 330-10-35, “Inventory”. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow-moving inventory items. These assessments consider various factors, including historical usage rate, technological obsolescence, estimated current and future market values and new product introduction. In cases when there is evidence that the anticipated utility of goods, in their disposal in the ordinary course of business, will be less than the historical cost of the inventory, the Company recognizes the difference as a current period charge to earnings and carries the inventory at the reduced cost basis until it is sold or disposed of. h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and software 15 - 33 (mainly 33) Office furniture and equipment 6 - 20 (mainly 15) Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset i. Impairment of long-lived assets and intangible assets subject to amortization: Property and equipment, right-of-use asset for leases and intangible assets subject to depreciation and amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. Recoverability of assets (asset group) to be held and used is measured by a comparison of the carrying amount of an asset (asset group) to the future undiscounted cash flows expected to be generated by the assets (asset group). If such assets (asset group) are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets (asset group) exceeds the fair value of the assets (asset group). Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 6 to 9 years. All intangible assets are amortized over their estimated useful lives on a straight-line basis. During 2022, 2021 and 2020, no impairment losses were recorded. j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC No. 350 "Intangibles – Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. ASC 350 requires goodwill to be tested for impairment at least annually or between annual tests in certain circumstances and written down when impaired. Goodwill is tested for impairment by comparing the fair value of each reporting unit with its carrying value. ASC 350 allows a company to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If the Company elects not to use this option, or if the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company prepares a quantitative analysis to determine whether the carrying value of a reporting unit exceeds its estimated fair value. If the carrying value of a reporting unit exceeds its estimated fair value, the Company recognizes an impairment of goodwill for the amount of this excess. The Company operates in one operating segment, and this segment is comprised of two reporting units. The Company conducts its annual test of impairment for goodwill on December 31st of each year, or more frequently if impairment indicators are present. No impairment loss was recorded during 2022, 2021 and 2020. k. Leases: The Company accounts for its leases according to ASC 842 - Leases (“ASC 842”). The Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use (“ROU”) asset for leases with a term of twelve months or less. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured based on the discounted present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate the lease is considered unless it is reasonably certain that the Company will not exercise the option. l. Contingencies The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss (see Note 11). m. Revenue recognition: The Group's revenues are derived from sales of its products, services and subscriptions: • Revenues from physical products and software-based products are recognized when control of the promised goods is transferred to the customer, either upon shipment or when the product is delivered, depending on the commercial terms of each transaction. Revenues from cloud subscriptions, included as product revenues, are recognized ratably, on a straight-line basis, over the subscription period. • Revenues from post-contract customer support ("PCS"), which represent mainly, help-desk support and unit repairs or replacements, professional services, and emergency response team (“ERT”) services are recognized ratably, on a straight-line basis, over the term of the related contract, which is typically between one year and three years. Renewals of support contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably, on a straight-line basis, over the renewed period. The Company's solutions are sold primarily through distributors and resellers, all of which are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. The Company’s arrangements typically contain various combinations of its products, subscriptions and PCS, which are distinct and are accounted for as separate performance obligations. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price (“SSP”). If the SSP is not observable, the Company estimates the SSP taking into account available information such as geographic specific factors, customer grouping and internally approved historical pricing guidelines related to the performance obligation. For PCS, the Company determines the standalone selling price based on observable renewals prices. For subscriptions, the Company determines the standalone selling price based on standalone subscription transactions. For products, the SSP is not observable, and therefore, the Company estimates the product SSP taking into account available information such as geographic specific factors, customer grouping and internally approved historical pricing guidelines. Deferred revenues represent mainly the unrecognized revenue collected for subscriptions and for PCS. Such revenues are recognized ratably over the term of the related agreement. Out of the gross deferred revenues balance at the beginning of the year ended December 31, 2022, approximately 64% was recognized as revenues during that year. Out of the gross deferred revenues balance at the beginning of the year ended December 31, 2022, an amount of $133,708 was recognized as revenues during that year. As of December 31, 2022, the aggregate amount of remaining performance obligations from contracts with customers was $304,132. The Company expects to recognize approximately 60% of its remaining performance obligations as revenue over the next twelve months, with the remaining recognized up to five years. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. The following table provides information about disaggregated revenues by major product line: Year ended December 31, 2022 2021 Products $ 84,508 $ 90,292 Services 103,966 103,220 Subscriptions 104,952 92,984 $ 293,426 $ 286,496 For information regarding disaggregated revenues by geographical market, please see Note 15. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the remaining performance obligations at the end of reporting period. In general, the Company expects to recognize the long-term portion of deferred revenue mainly over the remaining service period of up to five years. The Company records a provision for estimated sale returns, credits and stock rotation granted to customers on products in the same period the related revenues are recorded. These estimates are based on historical sales returns and other known factors. Such provisions amounted to $1,034 and $2,494 as of December 31, 2022 and 2021, respectively. The provision for estimated sale returns and credits as of December 31, 2022 and 2021, is included in other payables and accrued expenses in the consolidated balance sheets. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Costs to obtain contracts: Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Commission costs related to long-term service contracts and performance obligations satisfied over time are deferred and recognized on a systematic basis that is consistent with the transfer of the products or services to which the asset relates. Sales commissions paid for new contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit and are included in sales and marketing expenses in the accompanying consolidated statements of income (loss). The Company applies judgment in estimating the amortization period, by taking into consideration its product life term, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. As of December 31, 2022, the Company has determined the expected period of benefit to be approximately 3.35 years. Deferred commission costs capitalized are periodically reviewed for impairment. As of December 31, 2022 and 2021, the amount of deferred commission was $25,517 and $23,940, respectively and is included in other long-term assets on the consolidated balance sheets. During the year ended December 31, 2022 and 2021, the Company recorded amortization expenses in connection with deferred commissions in the amount of $13,075 and $10,091, respectively. n. Shipping and handling fees and costs: Shipping and handling fees charged to the Company's customers are recognized as product revenue in the period shipped and the related costs for providing these services are recorded as a product cost of revenues in the consolidated statements of income (loss). o. Cost of revenues: Cost of products is comprised of cost of software and hardware production, hosting, manuals, packaging, license fees paid to third parties, subcontractor fees, inventory write-offs and amortization of acquired technology. Cost of services is comprised of cost of post-sale customer support and hosting services. p. Warranty costs: The Company generally provides a one-year warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's historical experience. Warranty expenses for the years ended December 31, 2022, 2021 and 2020 were immaterial. q. Research and development expenses, net: Research and development costs are charged to the consolidated statements of income (loss) as incurred. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. r. Government grants: The Company received non-royalty-bearing grants from the Israel Innovation Authority ("IIA") for approved research and development projects. These grants are recognized at the time the Company is entitled to such grants on the basis of the costs incurred as provided by the relevant agreement and included as a deduction from research and development expenses, net. Research and development grants deducted from research and development expenses, net amounted to $1,354, $962 and $924 for the years ended December 31, 2022, 2021 and 2020, respectively. In addition, during 2021, an Israeli subsidiary of the Company received royalty-bearing grants from the IIA for approved research and development projects. These grants are recognized at the time the Israeli subsidiary is entitled to such grants on the basis of the costs incurred as provided by the relevant agreement and included as a deduction from research and development expenses, net. s. Accounting for share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of income (loss). Some of our subsidiaries have share option plans pursuant to which qualified directors and employees may be granted options for the purchase of securities of the subsidiaries. Share-based compensation expenses recorded on the subsidiaries' level are presented in non-controlling interests. The Company selected the Black-Scholes-Merton option pricing model to account for the fair value of its share option awards with only service conditions. The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company selected the Black-Scholes-Merton option pricing model to account for the fair value of its share option awards with only service conditions and whereas the fair value of the restricted share units awards ("RSUs") is based on the market value of the underlying shares at the date of grant. During 2020, the Board of Directors of the Company approved a market-condition based RSUs equity grant to the Chief Executive Officer of the Company. The vesting of the market-condition based RSUs granted during 2020 is dependent upon the Company's share performance over the requisite service period. On July 28, 2022, the Board of Directors of the Company approved an equity grant to the Chief Executive Officer of the Company, which is comprised of RSUs, market-condition based RSUs and market-condition based share options. The equity grant includes grants for the years 2022, 2023 and 2024 and are fixed monetary amounts ($7,725, $5,000 and $5,000, respectively). The number of the equity instruments for the 2023 and 2024 grants will be determined based on the Company's share price at January 1, 2023 and January 1, 2024, respectively. Market-condition based RSUs' vesting is dependent upon the fulfillment of certain market conditions and will vest, or partially vest, depending on the Company's share performance compared to other companies that are listed on the NASDAQ CTA Cybersecurity Index over the requisite service period, which is up to three years. Market-based condition share options' vesting is dependent upon the fulfillment of certain market conditions will vest depending on the Company's share performance over the requisite service period, which is up to three years. For the 2023 and 2024 grants, the Company recorded a liability in the amount of $150 and $956 which is included in other payables and accrued expenses and other long-term liabilities, respectively, in the consolidated balance sheets for the RSUs and the market-condition based RSUs as the Company has an obligation to issue a variable number of shares for which the monetary amount is fixed and the key terms and conditions of the equity grant are known. The fair value of the market-condition based awards was determined using a Monte Carlo simulation methodology. The fair value of each market-condition based RSUs and market-condition based share-options awards is estimated on the date of grant using the Monte Carlo model that uses the assumptions noted in the following table: Year ended December 31, 2022 2021 2020 Risk free interest rate 2.74%-2.75% - 0.36% Dividend yields 0% - 0% Expected volatility 27.54%- 32.88% - 24.97% Weighted average expected term from grant date (in years) 2.43-5.17 - 4 The option-pricing models require a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical share price movements over an historical period equivalent to the option's expected term. The expected option term represents the period of time that options are expected to be outstanding based on historical experience. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The fair value of the Company's share options granted to employees and directors for the years ended December 31, 2022, 2021 and 2020 was estimated using the following weighted average assumptions: Employees' share option plan: Year ended December 31, 2022 2021 2020 Risk free interest rate 2.72% 0.89% 0.33% Dividend yields 0% 0% 0% Expected volatility 31% 27% 26% Weighted average expected term from grant date (in years) 3.41 3.46 3.68 t. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes" ("ASC 740"). This statement prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is only addressed if the first step has been satisfied (i.e. the position is more likely than not to be sustained) otherwise a full liability in respect of a tax position not meeting the more likely than not criteria is recognized. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalty, if any related to unrecognized tax benefits in its taxes on income in the consolidated statements of income (loss). u. Concentrations of credit risks: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities and trade receivables, net. The majority of the Group's cash, cash equivalents and bank deposits are invested in major banks in Israel and the U.S. The Israeli bank deposits are not insured, while the deposits made in the United States are in excess of insured limits and are not otherwise insured. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk. The short-term and long-term bank deposits are held in financial institutions which management believes are institutions with high credit standing, and accordingly, minimal credit risk from geographic or credit concentration exists with respect to these bank deposits. As of December 31, 2022, 27%, 40%, and 34% of the Company’s short- and long-term bank deposits were deposited in major Israeli banks in Israel which are rated A, AAA and BBB+, respectively, as determined by the Israeli affiliate of Standard & Poor's ("S&P"). As of December 31, 2022, the maximal contractual duration of any of the Company's bank deposits was 2 years, the weighted average duration of the Company's deposits was 1.36 years, and the weighted average time to maturity was 0.62 years. The Company's marketable securities included investment in foreign banks, government debentures and corporate debentures. The financial institutions that hold the Company's marketable securities are major U.S. financial institutions, located in the United States. The Company's management believes that the Company's marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in each issuer, and accordingly, management believes that minimal credit risk exists from geographic or credit concentration with respect to these securities. From a geographic perspective, 64% of the Company’s debt marketable securities portfolio was invested in debt securities of U.S. issuers, 6% was invested in debt securities of European issuers and 30% was invested in debt securities of other geographic-located issuers. As of December 31, 2022, 95% of the Company's debt marketable securities portfolio was rated A- or higher, as determined by S&P, and 5% was rated BBB or BBB+. The trade receivables of the Group are mainly derived from sales to customers located primarily in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company makes estimates of expected credit losses for the credit losses based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and admi |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 3:- ACQUISITIONS On February 17, 2022, the Company acquired all of the technology and other intangible assets from SecurityDAM Ltd. ("SecurityDAM"), which was a related party and was the sole single-managed security service provider of the Company for a total consideration of (1) $30,000 in cash payable and (2) additional contingent consideration of up to $12,500 based on the revenues of the Company’s cloud DDoS protection service post acquisition. The contingent consideration was measured at fair value at the Closing Date and recorded as a liability in other long-term liabilities on the consolidated balance sheets in the amount of $9,525. The acquisition was accounted for as a business combination and the purchase consideration was allocated to assets acquired and liabilities assumed based on their estimated fair values, as presented in the following table: Consideration: Cash consideration paid on closing date $ 30,000 Contingent consideration fair value 9,525 Total purchase price $ 39,525 Identifiable assets acquired: Technology $ 12,661 Goodwill 26,864 $ 39,525 The estimated useful life of the technology is approximately 6 years. Goodwill generated from this business combination is primarily attributable to synergies between the Company's and SecurityDAM's respective products and services. The goodwill is deductible for income tax purposes. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 4:- MARKETABLE SECURITIES Debt securities with contractual maturities of less than one year are as follows: December 31, 2022 2021 Amortized Gross unrealized Gross unrealized Market Amortized Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 18,642 $ (537 ) $ - $ 18,105 $ 18,246 $ - $ 107 $ 18,353 Corporate debentures 26,639 (595 ) 31 26,075 21,050 (5 ) 99 21,144 Total marketable securities $ 45,281 $ (1,132 ) $ 31 $ 44,180 $ 39,296 $ (5 ) $ 206 $ 39,497 Debt securities with contractual maturities from one to three years are as follows: December 31, 2022 2021 Amortized Gross unrealized Gross unrealized Market Amortized Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 16,451 $ (1,018 ) $ - $ 15,433 $ 34,317 $ (304 ) $ 46 $ 34,059 Corporate debentures 77,876 (3,433 ) - 74,443 64,699 (649 ) 115 64,165 Total marketable securities $ 94,327 $ (4,451 ) $ - $ 89,876 $ 99,016 $ (953 ) $ 161 $ 98,224 Debt securities with contractual maturities of more than three years are as follows: December 31, 2022 2021 Amortized Gross unrealized Gross unrealized Market Amortized Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ - $ - $ - $ - $ - $ - $ - $ - Corporate debentures 289 (17 ) - 272 - - - - Total marketable securities $ 289 $ (17 ) $ - $ 272 $ - $ - $ - $ - Debt securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2022 are as follows: December 31, 2022 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total investments with continuous unrealized losses Fair Unrealized Fair Unrealized Fair Unrealized Value losses value losses value losses Foreign banks and government debentures $ 1,574 $ (2 ) $ 31,964 $ (1,552 ) $ 33,538 $ (1,554 ) Corporate debentures 27,677 (739 ) 69,838 (3,307 ) 97,515 (4,046 ) Total available-for-sale marketable securities $ 29,251 $ (741 ) $ 101,802 $ (4,859 ) $ 131,053 $ (5,600 ) Debt securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2021 are as follows: December 31, 2021 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total investments with continuous unrealized losses Fair Unrealized Fair Unrealized Fair Unrealized Value losses value losses value losses Foreign banks and government debentures $ 22,075 $ (202 ) $ 10,491 $ (104 ) $ 32,566 $ (306 ) Corporate debentures 49,526 (521 ) 13,903 (132 ) 63,429 (653 ) Total available-for-sale marketable securities $ 71,601 $ (723 ) $ 24,394 $ (236 ) $ 95,995 $ (959 ) As of December 31, 2022, and 2021, interest receivable amounted to $952 and $994, respectively, and is included within marketable securities in the consolidated balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5:- FAIR VALUE MEASUREMENTS In accordance with ASC No. 820, "Fair Value Measurements and Disclosures", the Company measures its cash equivalents, marketable securities, derivative instruments and contingent consideration at fair value on recurring basis. Cash equivalents and marketable securities are classified within Level 1 or Level 2 since these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The liability with respect to contingent consideration regarding SecurityDAM Ltd. acquisition is classified within Level 3, as this liability is valued using valuation techniques. Some of the inputs to these models are unobservable in the market. The Company's financial assets and liabilities measured at fair value on a recurring basis, including interest receivable components consisted of the following types of instruments as of December 31, 2022, and 2021: December 31, 2022 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 3,642 $ - $ - $ 3,642 Available-for-sale: Foreign banks and government debentures - 33,539 - 33,539 Corporate debentures - 100,789 - 100,789 Total financial assets $ 3,642 $ 134,328 $ - $ 137,970 Liabilities Derivative instruments $ - $ 632 $ - $ 632 Contingent consideration - - 8,281 8,281 Total financial liabilities $ - $ 632 $ 8,281 $ 8,913 December 31, 2021 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 488 $ - $ - $ 488 Marketable securities: Foreign banks and government debentures - 52,412 - 52,412 Corporate debentures - 85,309 - 85,309 Total financial assets $ 488 $ 137,721 $ - $ 138,209 The table below presents the changes in Level 3 contingent consideration obligation measured on a recurring basis and related to business combination of SecurityDAM Ltd. in February 2022: December 31, Fair value at the beginning of the year $ - Acquisition date fair value of contingent consideration related to investment in SecurityDAM Ltd. (see Note 3) 9,525 Changes in the fair value of contingent consideration in SecurityDAM Ltd. 819 Reclassification of payable related to contingent consideration to other payables and accrued expenses (see Note 10) (2,063 ) Fair value at the end of the year $ 8,281 The fair value of the contingent consideration related to the investment in SecurityDAM Ltd. was $8,281 as of December 31, 2022. The Company estimated the fair value of the contingent consideration using a predetermined percentage (as detailed in the agreement) out of expected revenues with a discount rate of between 9.32-10.4%. Changes in the contingent consideration are recorded in the consolidated statements of income (loss) in operating expenses under general and administrative expenses. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6:- INVENTORIES Inventories are comprised of the following: December 31, 2022 2021 Raw materials and components $ 1,899 $ 2,028 Work-in-progress 1,004 729 Finished products 8,525 8,823 $ 11,428 $ 11,580 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 7:- PROPERTY AND EQUIPMENT, NET December 31, 2022 2021 Cost: Computer, peripheral equipment and software $ 108,914 $ 103,291 Office furniture and equipment 14,034 13,489 Leasehold improvements 8,185 7,493 131,133 124,273 Accumulated depreciation: Computer, peripheral equipment and software 92,918 88,323 Office furniture and equipment 11,374 10,504 Leasehold improvements 5,773 5,206 110,065 104,033 Property and equipment, net $ 21,068 $ 20,240 Depreciation expenses for the years ended December 31, 2022, 2021 and 2020 were $7,986, $8,339 and $8,666, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8:- INTANGIBLE ASSETS, NET Intangible assets: Weighted average amortization December 31, period 2022 2021 (years) Cost: Acquired technology 7.6 $ 45,607 $ 32,946 Customers relationships and brand name 5.8 9,817 9,817 55,424 42,763 Accumulated amortization: Acquired technology 25,921 22,215 Customers relationships and brand name 9,817 9,817 35,738 32,032 Intangible assets, net $ 19,686 $ 10,731 Amortization expenses for the years ended December 31, 2022, 2021 and 2020 were $3,706, $1,857 and $1,893, respectively. Future estimated amortization expenses for the years ending: December 31, 2023 $ 3,968 2024 3,968 2025 3,968 2026 3,725 2027 and thereafter 4,057 Total $ 19,686 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 9:- LEASES The Company has various operating leases for office space, vehicles and warehouse space that expire on different dates through 2030 Aggregate lease payments for the right of use assets over the remaining lease period as of December 31, 2022, are as follows: 2023 $ 3,987 2024 5,073 2025 4,280 2026 3,234 2027 3,003 2028 and thereafter 6,713 Total undiscounted lease payments $ 26,290 Less: adjustment to discounted lease payments (2,144 ) Total discounted lease payments $ 24,146 The weighted-average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2022: Weighted-average remaining lease term (years): 6.42 Weighted-average discount rate: 2.7 % The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2021: Weighted average remaining lease term (years): 7.37 Weighted average discount rate: 2.7 % Total rent expenses for the years ended December 31, 2022, 2021 and 2020 were $6,856, $6,193 and $5,955, respectively (see also Note 17b). |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 10:- OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2022 2021 Accrued expenses and other $ 5,067 $ 8,987 Subcontractors accrual 2,105 2,344 Accrued taxes 3,028 18,950 Contingent consideration related to acquisition 2,063 - $ 12,263 $ 30,281 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 11:- COMMITMENTS AND CONTINGENT LIABILITIES a. Litigation: From time to time, the Company is party to other various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows and that the Company has provided an adequate accrual to cover the costs to resolve such legal proceedings, demands and claims. b. Royalties: A wholly owned Israeli subsidiary of the Company have been partially financed its research and development efforts through grants received from the Israeli Innovation Authority (the "IIA"). In connection with the IIA grants, the Company is committed to pay royalties to the IIA from its revenue, up to 100% of the amount of the grants received plus 3% annual interest, in accordance with the R&D Law and the rules and regulations thereunder. The grants are deducted from research and development expenses. As of December 31, 2022, the remaining contingent obligation of the Israeli subsidiary in connection with such payment of royalties is amounted to $333. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 12:- SHAREHOLDERS’ EQUITY The Company's shares are listed for trade on the NASDAQ Global Select Market under the symbol "RDWR". a. Rights of shares: Ordinary Shares: The ordinary shares confer upon the holders the right to receive notice to participate and vote in shareholders meetings of the Company and to receive dividend, if declared. b. Treasury shares: In May 2020, the Company’s Board of Directors authorized a new plan for the repurchase of up to an aggregate of $56,800 of the Company’s ordinary shares in the open market, subject to normal trading restrictions, or in privately negotiated transactions. In February 2021, the Company’s Board of Directors authorized a new plan for the repurchase of up to an aggregate of $80,000 of the Company’s ordinary shares in the open market, subject to normal trading restrictions, or in privately negotiated transactions. In March 2022, the Company’s Board of Directors authorized a new plan (the “2022 Plan”) for the repurchase of up to an aggregate of $80,000 of the Company’s ordinary shares in the open market, subject to normal trading restrictions, or in privately negotiated transactions. In August 2022, the Company’s Board of Directors authorized an increase in the repurchase authority under the 2022 Plan by an additional $20,000, to a total of up to $100,000. The 2022 Plan will expire on October 31, 2023. c. Dividends: Dividends, if any, will be paid in NIS. Dividends paid to shareholders outside Israel may be converted to U.S. dollars on the basis of the exchange rate prevailing at the date of the conversion. The Company does not intend to pay cash dividends in the foreseeable future. d. Radware Ltd. Share Option Plans: The Company has two share option plans, the Company's Key Employee Share Incentive Plan (1997) as amended and restated (the "1997 Plan") and the Directors and Consultants Option Plan (the "DC Plan" and together with the 1997 Plan, Share Option Plans"). Under the Share Option Plans, options may be granted to officers, directors, employees and consultants of the Group. The exercise price per share under the Share Option Plans was generally not less than the market price of an ordinary share at the date of grant. The options vest primarily over four years. Each option is exercisable for one ordinary share. Any options, which are forfeited or not exercised before expiration, become available for future grants. Pursuant to the Share Option Plans, the Company reserved for issuance 34,412,967 ordinary shares. RSUs: In addition to granting share options, since 2013, the Company started to routinely grant RSUs under the 1997 Plan. RSUs vest primarily over a four-year period of employment. RSUs that are cancelled or forfeited become available for future grants. The number of “Reserved and Authorized Shares” under the Equity Plans shall equal the sum of (i) the number of ordinary shares reserved and authorized under the Equity Incentive, and other awards granted under the Equity Incentive Plans as of such date, and (ii) the number of ordinary shares reserved. As of December 31, 2022, the number of Reserved and Authorized Shares under the Equity Incentive Plans is as detailed below: 2022 Share options exercised and outstanding 27,904,469 RSUs vested and outstanding 5,942,212 Ordinary shares available for issuance under the Equity Incentive Plans 566,286 Total reserved and authorized shares as of December 31, 2022 34,412,967 A summary of employees and directors options activity under the Company's Share Option Plans as of December 31, 2022 is as follows: Number of Weighted- Weighted- (in years) Aggregate Outstanding at January 1, 2022 2,150,312 $ 24.17 3.39 $ 37,566 Granted 250,284 25.55 Exercised (155,406 ) 17.61 Expired (26,775 ) 21.32 Forfeited (260,386 ) 23.40 Outstanding at December 31, 2022 1,958,029 $ 25.01 3.15 $ - Exercisable at December 31, 2022 1,032,328 $ 24.29 2.41 $ - Vested and expected to vest at December 31, 2022 1,908,623 $ 24.98 3.15 $ - The weighted-average grant-date fair value of options granted during the years ended December 31, 2022, 2021 and 2020 was $6.77, $6.87 and $4.74, respectively. As of December 31, 2022, there was approximately $4,091 of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's Share Option plans. That cost is expected to be recognized over a weighted-average period of 1.61 years. The total intrinsic value of options exercised during the years 2022, 2021 and 2020 was $1,894, $14,003 and $13,335, respectively. The aggregate intrinsic value of the outstanding share options at December 31, 2022 and 2021, amounted to nil and 2,150,312, respectively, outstanding options that are in-the-money as of such dates. 1,958,029 outstanding options were out-of-the-money as of December 31, 2022. The options outstanding under the Company's Share Option Plans as of December 31, 2022, have been separated into ranges of exercise price as follows: December 31, 2022 Outstanding Exercisable Weighted average Weighted Weighted Ranges of remaining average average exercise Number of contractual exercise Number of exercise price options life (years) price options price $ 20.26-24.89 1,381,402 3.13 $ 23.22 767,214 $ 23.18 $ 25.25-29.10 370,385 2.73 $ 27.10 225,114 $ 26.59 $ 32.71-35.43 206,242 4.11 $ 33.20 40,000 $ 32.71 1,958,029 1,032,328 The following table summarizes information relating to the number of RSUs, as well as changes to such awards during 2022: Year ended 2022 Outstanding at January 1, 2022 2,220,311 Granted 1,947,499 Vested (549,447 ) Forfeited (507,157 ) Outstanding as of December 31, 2022 3,111,206 As of December 31, 2022, there was approximately $60,405 of total unrecognized compensation costs related to non-vested RSUs granted under the Company's Share Options Plans. That cost is expected to be recognized over a weighted-average period of 1.69 years. The weighted-average grant date fair value of RSUs granted during the year ended December 31, 2022, 2021 and 2020 were $21.31, $32.57 and $22.54, respectively. The weighted-average grant date fair value of RSUs vested during the year ended December 31, 2022, 2021 and 2020 were $23.65, $21.77 and $18.18, respectively. The weighted-average grant date fair value of RSUs forfeited during the year ended December 31, 2022, 2021 and 2020 were $22.88, $24.32 and $23.24, respectively. Share-based compensation was recorded in the following items within the consolidated statements of income (loss): Year ended December 31, 2022 2021 2020 Cost of revenues $ 399 $ 236 $ 188 Research and development, net 7,215 5,412 4,409 Sales and marketing 11,196 8,811 8,315 General and administrative 7,286 3,115 3,633 Total expenses $ 26,096 $ 17,574 $ 16,545 e. Skyhawk (CNP) Security Ltd. Share Option Plans: On As of December 31, 2022, there was approximately $5,941 of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Skyhawk Plan. That cost is expected to be recognized over a weighted-average period of 1.61 years. Share-based compensation was recorded in the following items within the consolidated statements of income (loss): Year ended Cost of revenues $ - Research and development, net 77 Sales and marketing 45 General and administrative 1,135 Total expenses $ 1,257 A summary of employees and directors options activity under the Skyhawk Share Option Plans as of December 31, 2022 is as follows: Number of Weighted- Weighted- (in years) Aggregate Outstanding at January 1, 2022 - $ - - - Granted 20,467,841 0.33 Exercised - - - - Expired - - - - Forfeited (125,848 ) 0.48 - - Outstanding at December 31, 2022 20,341,993 $ 0.33 6.43 - Exercisable at December 31, 2022 - $ - - - Vested and expected to vest at December 31, 2022 20,341,993 $ 0.33 6.43 - |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 13:- EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net earnings (loss) per share: Year ended December 31, 2022 2021 2020 Numerator for basic and diluted net earnings (loss) per share: Net income (loss) $ (166 ) $ 7,811 $ 9,636 Weighted average shares outstanding, net of treasury shares: Denominator for basic net earnings (loss) per share 44,943,168 45,919,835 46,460,974 Effect of dilutive securities: Employee share options and RSUs - 1,583,256 1,278,566 Denominator for diluted net earnings (loss) per share 44,943,168 47,503,091 47,739,540 Basic net earnings (loss) per share $ (0.00 ) $ 0.17 $ 0.21 Diluted net earnings (loss) per share $ (0.00 ) $ 0.16 $ 0.20 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 14:- TAXES ON INCOME a. General: A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 Beginning balance $ 5,312 $ 7,125 Decrease related to settlement with tax authorities - (4,258 ) Decrease related to expired tax years (723 ) - Additions for prior year tax positions 162 2,115 Decrease for prior year tax positions (244 ) (1,428 ) Additions for current year tax positions 2,927 1,758 Ending balance $ 7,434 $ 5,312 *) As of December 31, 2022 and 2021, unrecognized tax benefit of $1,906 and nil was presented net from deferred tax asset. As of December 31, 2022, the entire amount of the unrecognized tax benefits could affect the Company's income tax provision and the effective tax rate. The Company adjusts the unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires or when new information is available. During the years ended December 31, 2022, 2021 and 2020 a net amount of $236, $243 and $657, respectively, were added to the unrecognized tax benefits derived from interest and exchange rate differences expenses related to prior years' uncertain tax positions. As of December 31, 2022, and 2021, the Company had accrued interest liability related to uncertain tax positions in the amounts of $390 and $97, respectively, which is included within other long-term liabilities on the consolidated balance sheets. Exchange rate differences are recorded within financial income, net, while interest is recorded within taxes on income in the consolidated statements of income. During November 2021, the Company reached a settlement with the Israeli Tax Authority (“ITA”) regarding the Company's corporate tax returns for the years 2015-2018. As a result, the Company's Israeli tax returns have been examined for all years including and prior to fiscal 2018, and the Company is no longer subject to audit for these periods. The settlement amounted to a total payment of $9,279 (NIS 28,858). The Company had provisions for the related years in the amount of $4,258 which were offset against such payment. In addition, as part of the settlement with the ITA, the Company received additional deductible expenses in the amount of $5,190. The Company's U.S subsidiary files income tax return in the U.S federal jurisdiction. As of December 31, 2022, the 2015 2021 The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company's income tax provisions and accruals. Such differences could have a material effect on the Company's income tax provision and net income (loss) in the period in which such determination is made. b. Israeli taxation: 1. Foreign Exchange Regulations: Commencing taxable year 2003, the Company has elected to measure its taxable income and file its tax return under the Israeli Income Tax Regulations. Under the Foreign Exchange Regulations the Israeli company is calculating its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. 2. Tax rates: The Israeli corporate tax rate in 2022, 2021 and 2020 was 23%. A company is taxable on its real capital gains at the corporate tax rate in the year of sale. 3. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("Amendment 73") was published. According to Amendment 73, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). Amendment 73 also prescribes special tax tracks for technological enterprises, the new tax tracks under the amendment are as follows: Technological preferred enterprise - an enterprise whose total consolidated revenues (parent company and all subsidiaries) is less than NIS 10 billion. Technological Preferred Enterprise, as defined in the law, which is located in the center of Israel (where our Israeli subsidiary is currently located) is subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A, the tax rate is 7.5%), subject to satisfaction of a number of conditions, including compliance with a minimal amount or ratio of annual Research and development expenditure and Research and development employees, as well as having at least 25% of annual income derived from exports. The Company believes it meets the Technological preferred enterprise conditions. Income not eligible for Preferred Technological Enterprise benefits is taxed at a regular rate, 23% from 2018 onwards. Prior to 2014, most of the Company’s income was exempt from tax or subject to reduced tax rates under the Approved Enterprise program or the Beneficiary Enterprise in the Investment Law. Upon distribution of exempt income, the distributing company will be subject to corporate reduced tax rates ordinarily applicable to such income under the Investment Law. Reduced income under the Investment Law including the Preferred Enterprise Regime and Preferred Technological Enterprise Regime will be freely distributable as dividends, subject to a 15% or 20% withholding tax (or lower rate for non-Israeli resident shareholder, under an applicable tax treaty). On November 2, 2021, the Israeli Parliament approved a final bill regarding repatriations of trapped earnings out of Approved/Privileged Enterprises. The temporary provisions have come into effect as of November 15, 2021. The Israeli government agreed to grant relief on the amount of tax which should have been paid on distributable earnings in order to encourage companies to pay the reduced taxes during the next 12 months (the “temporary order”). The temporary order provides partial relief from previous Approved/Privileged Enterprise tax rates as defined in the Law for companies which opt to enjoy the privilege. The new temporary order does not require the actual distribution of the retained earnings, nor does it provide any relief from the 15% dividend withholding tax. As part of the temporary order, the Company opted to implement the provisions included in the temporary order and completed the taxes on its trapped tax-exempt earnings. As a result, the Company paid $8,247 during 2022. As of December 31, 2021, the Company does not have any tax-exempted earnings attributable to its Beneficiary, Approved and Preferred Enterprise programs. Through December 31, 2022, the Company has net operating carryforward losses of approximately $11,170, which can be carried forward and offset against taxable income in the future, for an indefinite period. c. Taxes on income are comprised as follows: Year ended December 31, 2022 2021 2020 Current taxes $ 6,865 $ 18,287 $ 3,995 Deferred taxes (1,986 ) (3,466 ) 333 $ 4,879 $ 14,821 $ 4,328 Domestic $ 2,820 $ 10,741 $ 2,648 Foreign 2,059 4,080 1,680 $ 4,879 $ 14,821 $ 4,328 Year ended December 31, 2022 2021 2020 Domestic taxes: Current taxes $ 2,967 $ 12,890 $ 3,166 Deferred taxes (147 ) (2,149 ) (518 ) 2,820 10,741 2,648 Foreign taxes: Current taxes 3,898 5,397 829 Deferred taxes (1,839 ) (1,317 ) 851 2,059 4,080 1,680 $ 4,879 $ 14,821 $ 4,328 d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company and its subsidiaries' deferred tax liabilities and assets are as follows: December 31, 2022 2021 Carryforward losses and tax credit $ 8,456 $ 9,336 Deferred revenues 6,897 5,377 Unrealized loss on marketable securities 1,281 136 ROU assets 2,289 2,372 Temporary differences 9,327 6,583 Deferred tax assets before valuation allowance 28,250 23,804 Valuation allowance (5,162 ) (2,760 ) Net deferred tax assets 23,088 21,044 Intangible assets, including goodwill (4,529 ) (4,543 ) Operating lease liabilities (2,289 ) (2,372 ) Depreciable assets (1,299 ) (1,699 ) Deferred tax liability (8,117 ) (8,614 ) Net deferred tax assets $ 14,971 $ 12,430 *) As of December 31, 2022, and 2021, unrecognized tax benefit of $1,906 and nil was presented net from deferred tax asset. e. Foreign: On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. Apportioned income is also subject to tax in various states. Through December 31, 2022, the U.S. subsidiary had a U.S. federal loss carryforward of $3,507, which can be carried forward and offset against taxable income up to 20 years, expiring between fiscal 2023 2038 Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. On March 27, 2020, President Donald J. Trump signed the Coronavirus Aid Relief, and Economic Security Act (the “CARES Act”) into law. The Act includes several significant business tax provisions that, among other things, eliminate the taxable income limit for certain net operating losses and allow businesses and individuals to carry back Net Operating Losses (“NOLs”) arising in 2018, 2019, and 2020 to the five prior tax years. Consequently, management intend is to carry back NOLs generated in 2019 and 2020 to tax years 2015 and 2016. The applicable tax rate during these years was 34%, therefore, recognizing a deferred benefit of $1,698 due to the remeasurement of the NOLs deferred tax asset. f. Income taxes of non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The Company does not provide deferred tax liabilities when it intends to reinvest earnings of foreign subsidiaries indefinitely. g. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the consolidated statements of income is as follows: Year ended December 31, 2022 2021 2020 Income (loss) before taxes, as reported in the consolidated statements of income (loss) $ 4,713 $ 22,632 $ 13,964 Statutory tax rate 23 % 23 % 23 % Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate $ 1,084 $ 5,205 $ 3,212 Tax adjustment in respect of different tax rate of foreign subsidiary 48 33 (185 ) Non-deductible expenses and other permanent differences 197 305 83 Deferred taxes on losses for which valuation allowance was provided, net 2,402 896 959 Utilization of tax losses and deferred taxes for which valuation allowance was provided, net - (128 ) (152 ) Foreign withholding taxes 3,138 2,656 1,489 Share compensation relating to share options per ASC No. 718 1,517 (2,369 ) 1,258 Income taxes in respect of prior years (1,388 ) 687 292 Change of tax rate (505 ) 462 (599 ) Approved, Privileged and Preferred enterprise loss (benefits) (*) (1,457 ) 6,869 (1,844 ) Other (157 ) 205 (185 ) Actual tax expense $ 4,879 $ 14,821 $ 4,328 (*) Basic earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.03 $ 0.15 $ 0.04 Diluted earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.03 $ 0.14 $ 0.04 h. Income before taxes on income is comprised as follows: Year ended December 31, 2022 2021 2020 Domestic $ (1,105 ) $ 17,817 $ 7,751 Foreign 5,818 4,815 6,213 Income before taxes on income $ 4,713 $ 22,632 $ 13,964 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 15:- GEOGRAPHIC INFORMATION Summary information about geographic areas: The Company operates in one reportable segment (see Note 1 for a brief description of the Company's business). The total revenues are attributed to geographic areas based on the location of the end-users. The following table presents total revenues for the years ended December 31, 2022, 2021 and 2020 from a geographical perspective: Year ended December 31, 2022 2021 2020 Revenues from sales to customers located at: The United States $ 94,014 $ 98,937 $ 93,706 America - other 29,933 29,833 20,707 EMEA*) 104,219 98,388 78,362 Asia Pacific 65,260 59,338 57,252 $ 293,426 $ 286,496 $ 250,027 *) Europe, the Middle East and Africa. The following table presents long-lived assets and ROU assets as of December 31, 2022 and 2021 from a geographical perspective: December 31, 2022 2021 Long-lived assets, by geographic region: America (principally the United States) $ 1,892 $ 2,609 Israel 39,200 39,467 EMEA - other 1,039 1,201 Asia Pacific 2,016 1,792 $ 44,147 $ 45,069 |
SELECTED CONSOLIDATED STATEMENT
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA | 12 Months Ended |
Dec. 31, 2022 | |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | |
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA | NOTE 16:- SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA Financial income, net: Year ended December 31, 2022 2021 2020 Financial income, net: Interest on bank deposits and other $ 5,137 $ 4,131 $ 5,916 Amortization of premiums, accretion of discounts and interest on debt marketable securities, net 1,754 1,855 3,700 Gain on sale of marketable securities 68 438 639 Bank charges (207 ) (200 ) (189 ) Foreign currency differences, net 1,300 (1,817 ) (2,270 ) $ 8,052 $ 4,407 $ 7,796 |
BALANCES AND TRANSACTIONS WITH
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | NOTE 17:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES Represents transactions and balances with other entities in which certain members of the Company's board of directors, management or shareholders have interest: a. The following related party balances are included in the consolidated balance sheets: December 31, 2022 2021 Trade receivables and prepaid expenses $ 745 $ 5,255 Trade payables and accrued expenses $ 1,968 $ 476 b. The following related party transactions are included in the consolidated statements of income (loss): Year ended December 31, 2022 2021 2020 Revenues (1) $ 2,327 $ 3,100 $ 3,177 Cost of revenues (2) $ 2,822 $ 11,482 $ 10,196 Operating expenses, net - primarily lease, subcontractors and communications (3) $ 8,018 $ 6,757 $ 5,201 Purchase of property and equipment $ 1,175 $ 189 $ 1,586 (1) Distribution of the Company's products by a related party on a non-exclusive basis. (2) Related to cost of product purchased from one of the related companies (SecurityDAM Ltd.). On February 17, 2022, the Company acquired all of the technology and other intangible assets from SecurityDAM Ltd., which was a related company and the sole single-managed security service provider of the company. For additional details, see Note 3. (3) The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company provides certain services to related parties. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Financial statements in United States dollars | b. Financial statements in United States dollars: A majority of the Group's revenues are denominated in United States dollars ("dollar" or "U.S. dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs are denominated in dollar. The Company's management believes that the dollar is the primary currency of the economic environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standards Codification ("ASC") No. 830 "Foreign Currency Matters". All transaction gains and losses from the re-measured monetary balance sheet items are reflected in the consolidated statements of income (loss) as financial income or expenses, as appropriate. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include accounts of the Company's wholly-owned subsidiaries as well as Skyhawk in which the Company controls the majority voting rights. All intercompany transactions and balances have been eliminated upon consolidation. Non-controlling interests of subsidiaries represents the amount of funds received in exchange for the non-controlling interests in Skyhawk and share-based compensation expenses for equity awards of certain subsidiaries granted to employees of those subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. For additional details, see also Note 2y. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly-liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition. |
Bank deposits | e. Bank deposits: Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost, which approximate market values. Bank deposits with maturities of more than one year are included in long-term bank deposits. Long-term bank deposits are stated at cost, which approximates market values. |
Investment in debt marketable securities | f. Investment in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, "Investments - Debt Securities". Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument's underlying contractual maturity date and the entity's expectations of sales and redemptions in the following year. The Company classified all of its securities as available-for-sale marketable securities. Debt securities are carried at fair value, with the unrealized gains and losses reported in "Accumulated other comprehensive income (loss)" in shareholders' equity. Realized gains and losses on sales of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities are included in financial income, net in the Company’s consolidated statements of income (loss). Commencing January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13, Topic 326 which modified the other than temporary impairment model for available-for-sale debt securities. Available-for-sale securities are periodically evaluated for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor's ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income, net when the impairment is incurred. Unrealized non-credit related losses and unrealized gains, net of tax, are reported as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets until realized. Credit loss impairments for the years ended December 31, 2022, 2021 and 2020 were immaterial. |
Inventories | g. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory write-off is provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories and discontinued products. Inventory write-offs totaled $397, $2,028 and $616 in 2022, 2021 and 2020, respectively, and have been included in cost of revenues of products in the Company’s consolidated statements of income (loss). Cost is determined as follows: Raw materials and components - using the "first-in, first-out" method. Work-in-progress and finished products - raw materials as above with the addition of subcontracting costs, calculated on the basis of direct subcontractors costs and with direct overhead costs. The Company assesses the carrying value of its inventory for each reporting period to ensure inventory is reported at the lower of cost or net realizable value in accordance with ASC No. 330-10-35, “Inventory”. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow-moving inventory items. These assessments consider various factors, including historical usage rate, technological obsolescence, estimated current and future market values and new product introduction. In cases when there is evidence that the anticipated utility of goods, in their disposal in the ordinary course of business, will be less than the historical cost of the inventory, the Company recognizes the difference as a current period charge to earnings and carries the inventory at the reduced cost basis until it is sold or disposed of. |
Property and equipment, net | h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and software 15 - 33 (mainly 33) Office furniture and equipment 6 - 20 (mainly 15) Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset |
Impairment of long-lived assets and intangible assets subject to amortization | i. Impairment of long-lived assets and intangible assets subject to amortization: Property and equipment, right-of-use asset for leases and intangible assets subject to depreciation and amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. Recoverability of assets (asset group) to be held and used is measured by a comparison of the carrying amount of an asset (asset group) to the future undiscounted cash flows expected to be generated by the assets (asset group). If such assets (asset group) are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets (asset group) exceeds the fair value of the assets (asset group). Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 6 to 9 years. All intangible assets are amortized over their estimated useful lives on a straight-line basis. During 2022, 2021 and 2020, no impairment losses were recorded. |
Goodwill | j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC No. 350 "Intangibles – Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. ASC 350 requires goodwill to be tested for impairment at least annually or between annual tests in certain circumstances and written down when impaired. Goodwill is tested for impairment by comparing the fair value of each reporting unit with its carrying value. ASC 350 allows a company to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If the Company elects not to use this option, or if the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company prepares a quantitative analysis to determine whether the carrying value of a reporting unit exceeds its estimated fair value. If the carrying value of a reporting unit exceeds its estimated fair value, the Company recognizes an impairment of goodwill for the amount of this excess. The Company operates in one operating segment, and this segment is comprised of two reporting units. The Company conducts its annual test of impairment for goodwill on December 31st of each year, or more frequently if impairment indicators are present. No impairment loss was recorded during 2022, 2021 and 2020. |
Leases | k. Leases: The Company accounts for its leases according to ASC 842 - Leases (“ASC 842”). The Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use (“ROU”) asset for leases with a term of twelve months or less. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured based on the discounted present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate the lease is considered unless it is reasonably certain that the Company will not exercise the option. |
Contingencies | l. Contingencies The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss (see Note 11). |
Revenue recognition | m. Revenue recognition: The Group's revenues are derived from sales of its products, services and subscriptions: • Revenues from physical products and software-based products are recognized when control of the promised goods is transferred to the customer, either upon shipment or when the product is delivered, depending on the commercial terms of each transaction. Revenues from cloud subscriptions, included as product revenues, are recognized ratably, on a straight-line basis, over the subscription period. • Revenues from post-contract customer support ("PCS"), which represent mainly, help-desk support and unit repairs or replacements, professional services, and emergency response team (“ERT”) services are recognized ratably, on a straight-line basis, over the term of the related contract, which is typically between one year and three years. Renewals of support contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably, on a straight-line basis, over the renewed period. The Company's solutions are sold primarily through distributors and resellers, all of which are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. The Company’s arrangements typically contain various combinations of its products, subscriptions and PCS, which are distinct and are accounted for as separate performance obligations. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price (“SSP”). If the SSP is not observable, the Company estimates the SSP taking into account available information such as geographic specific factors, customer grouping and internally approved historical pricing guidelines related to the performance obligation. For PCS, the Company determines the standalone selling price based on observable renewals prices. For subscriptions, the Company determines the standalone selling price based on standalone subscription transactions. For products, the SSP is not observable, and therefore, the Company estimates the product SSP taking into account available information such as geographic specific factors, customer grouping and internally approved historical pricing guidelines. Deferred revenues represent mainly the unrecognized revenue collected for subscriptions and for PCS. Such revenues are recognized ratably over the term of the related agreement. Out of the gross deferred revenues balance at the beginning of the year ended December 31, 2022, approximately 64% was recognized as revenues during that year. Out of the gross deferred revenues balance at the beginning of the year ended December 31, 2022, an amount of $133,708 was recognized as revenues during that year. As of December 31, 2022, the aggregate amount of remaining performance obligations from contracts with customers was $304,132. The Company expects to recognize approximately 60% of its remaining performance obligations as revenue over the next twelve months, with the remaining recognized up to five years. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. The following table provides information about disaggregated revenues by major product line: Year ended December 31, 2022 2021 Products $ 84,508 $ 90,292 Services 103,966 103,220 Subscriptions 104,952 92,984 $ 293,426 $ 286,496 For information regarding disaggregated revenues by geographical market, please see Note 15. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the remaining performance obligations at the end of reporting period. In general, the Company expects to recognize the long-term portion of deferred revenue mainly over the remaining service period of up to five years. The Company records a provision for estimated sale returns, credits and stock rotation granted to customers on products in the same period the related revenues are recorded. These estimates are based on historical sales returns and other known factors. Such provisions amounted to $1,034 and $2,494 as of December 31, 2022 and 2021, respectively. The provision for estimated sale returns and credits as of December 31, 2022 and 2021, is included in other payables and accrued expenses in the consolidated balance sheets. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Costs to obtain contracts: Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Commission costs related to long-term service contracts and performance obligations satisfied over time are deferred and recognized on a systematic basis that is consistent with the transfer of the products or services to which the asset relates. Sales commissions paid for new contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit and are included in sales and marketing expenses in the accompanying consolidated statements of income (loss). The Company applies judgment in estimating the amortization period, by taking into consideration its product life term, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. As of December 31, 2022, the Company has determined the expected period of benefit to be approximately 3.35 years. Deferred commission costs capitalized are periodically reviewed for impairment. As of December 31, 2022 and 2021, the amount of deferred commission was $25,517 and $23,940, respectively and is included in other long-term assets on the consolidated balance sheets. During the year ended December 31, 2022 and 2021, the Company recorded amortization expenses in connection with deferred commissions in the amount of $13,075 and $10,091, respectively. |
Shipping and handling fees and costs | n. Shipping and handling fees and costs: Shipping and handling fees charged to the Company's customers are recognized as product revenue in the period shipped and the related costs for providing these services are recorded as a product cost of revenues in the consolidated statements of income (loss). |
Cost of revenues | o. Cost of revenues: Cost of products is comprised of cost of software and hardware production, hosting, manuals, packaging, license fees paid to third parties, subcontractor fees, inventory write-offs and amortization of acquired technology. Cost of services is comprised of cost of post-sale customer support and hosting services. |
Warranty costs | p. Warranty costs: The Company generally provides a one-year warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's historical experience. Warranty expenses for the years ended December 31, 2022, 2021 and 2020 were immaterial. |
Research and development expenses, net | q. Research and development expenses, net: Research and development costs are charged to the consolidated statements of income (loss) as incurred. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. |
Government grants | r. Government grants: The Company received non-royalty-bearing grants from the Israel Innovation Authority ("IIA") for approved research and development projects. These grants are recognized at the time the Company is entitled to such grants on the basis of the costs incurred as provided by the relevant agreement and included as a deduction from research and development expenses, net. Research and development grants deducted from research and development expenses, net amounted to $1,354, $962 and $924 for the years ended December 31, 2022, 2021 and 2020, respectively. In addition, during 2021, an Israeli subsidiary of the Company received royalty-bearing grants from the IIA for approved research and development projects. These grants are recognized at the time the Israeli subsidiary is entitled to such grants on the basis of the costs incurred as provided by the relevant agreement and included as a deduction from research and development expenses, net. |
Accounting for stock-based compensation | s. Accounting for share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of income (loss). Some of our subsidiaries have share option plans pursuant to which qualified directors and employees may be granted options for the purchase of securities of the subsidiaries. Share-based compensation expenses recorded on the subsidiaries' level are presented in non-controlling interests. The Company selected the Black-Scholes-Merton option pricing model to account for the fair value of its share option awards with only service conditions. The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company selected the Black-Scholes-Merton option pricing model to account for the fair value of its share option awards with only service conditions and whereas the fair value of the restricted share units awards ("RSUs") is based on the market value of the underlying shares at the date of grant. During 2020, the Board of Directors of the Company approved a market-condition based RSUs equity grant to the Chief Executive Officer of the Company. The vesting of the market-condition based RSUs granted during 2020 is dependent upon the Company's share performance over the requisite service period. On July 28, 2022, the Board of Directors of the Company approved an equity grant to the Chief Executive Officer of the Company, which is comprised of RSUs, market-condition based RSUs and market-condition based share options. The equity grant includes grants for the years 2022, 2023 and 2024 and are fixed monetary amounts ($7,725, $5,000 and $5,000, respectively). The number of the equity instruments for the 2023 and 2024 grants will be determined based on the Company's share price at January 1, 2023 and January 1, 2024, respectively. Market-condition based RSUs' vesting is dependent upon the fulfillment of certain market conditions and will vest, or partially vest, depending on the Company's share performance compared to other companies that are listed on the NASDAQ CTA Cybersecurity Index over the requisite service period, which is up to three years. Market-based condition share options' vesting is dependent upon the fulfillment of certain market conditions will vest depending on the Company's share performance over the requisite service period, which is up to three years. For the 2023 and 2024 grants, the Company recorded a liability in the amount of $150 and $956 which is included in other payables and accrued expenses and other long-term liabilities, respectively, in the consolidated balance sheets for the RSUs and the market-condition based RSUs as the Company has an obligation to issue a variable number of shares for which the monetary amount is fixed and the key terms and conditions of the equity grant are known. The fair value of the market-condition based awards was determined using a Monte Carlo simulation methodology. The fair value of each market-condition based RSUs and market-condition based share-options awards is estimated on the date of grant using the Monte Carlo model that uses the assumptions noted in the following table: Year ended December 31, 2022 2021 2020 Risk free interest rate 2.74%-2.75% - 0.36% Dividend yields 0% - 0% Expected volatility 27.54%- 32.88% - 24.97% Weighted average expected term from grant date (in years) 2.43-5.17 - 4 The option-pricing models require a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical share price movements over an historical period equivalent to the option's expected term. The expected option term represents the period of time that options are expected to be outstanding based on historical experience. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The fair value of the Company's share options granted to employees and directors for the years ended December 31, 2022, 2021 and 2020 was estimated using the following weighted average assumptions: Employees' share option plan: Year ended December 31, 2022 2021 2020 Risk free interest rate 2.72% 0.89% 0.33% Dividend yields 0% 0% 0% Expected volatility 31% 27% 26% Weighted average expected term from grant date (in years) 3.41 3.46 3.68 |
Income taxes | t. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes" ("ASC 740"). This statement prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is only addressed if the first step has been satisfied (i.e. the position is more likely than not to be sustained) otherwise a full liability in respect of a tax position not meeting the more likely than not criteria is recognized. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalty, if any related to unrecognized tax benefits in its taxes on income in the consolidated statements of income (loss). |
Concentrations of credit risks | u. Concentrations of credit risks: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities and trade receivables, net. The majority of the Group's cash, cash equivalents and bank deposits are invested in major banks in Israel and the U.S. The Israeli bank deposits are not insured, while the deposits made in the United States are in excess of insured limits and are not otherwise insured. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk. The short-term and long-term bank deposits are held in financial institutions which management believes are institutions with high credit standing, and accordingly, minimal credit risk from geographic or credit concentration exists with respect to these bank deposits. As of December 31, 2022, 27%, 40%, and 34% of the Company’s short- and long-term bank deposits were deposited in major Israeli banks in Israel which are rated A, AAA and BBB+, respectively, as determined by the Israeli affiliate of Standard & Poor's ("S&P"). As of December 31, 2022, the maximal contractual duration of any of the Company's bank deposits was 2 years, the weighted average duration of the Company's deposits was 1.36 years, and the weighted average time to maturity was 0.62 years. The Company's marketable securities included investment in foreign banks, government debentures and corporate debentures. The financial institutions that hold the Company's marketable securities are major U.S. financial institutions, located in the United States. The Company's management believes that the Company's marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in each issuer, and accordingly, management believes that minimal credit risk exists from geographic or credit concentration with respect to these securities. From a geographic perspective, 64% of the Company’s debt marketable securities portfolio was invested in debt securities of U.S. issuers, 6% was invested in debt securities of European issuers and 30% was invested in debt securities of other geographic-located issuers. As of December 31, 2022, 95% of the Company's debt marketable securities portfolio was rated A- or higher, as determined by S&P, and 5% was rated BBB or BBB+. The trade receivables of the Group are mainly derived from sales to customers located primarily in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company makes estimates of expected credit losses for the credit losses based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company's consolidated statements of income (loss). In certain circumstances, the Company may require from its customers letters of credit, other collateral or additional guarantees. For the years ended December 2022, 2021 and 2020, bad debt expenses were nil. |
Derivative and hedging activities | v. Derivative and hedging activities: The Company's risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. ASC 815, "Derivatives and Hedging" ("ASC 815"), requires the Company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, an entity must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Gains and losses on derivatives instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that are attributable to a particular risk), are recorded in accumulated other comprehensive income (loss) and reclassified into consolidated statements of income (loss) in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. During 2022 and 2020, the Company entered into forward contracts to hedge a portion of anticipated New Israeli Shekel ("NIS") payroll and benefit payment. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured in fair value. These transactions are effective and, as a result, gain or loss on the derivative instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified as payroll expenses at the time that the hedged income or expense is recorded. As of December 31, 2022, we had outstanding currency forwards contracts in the total amount of approximately $62,200 to hedge portions of our forecasted expenses denominated in NIS. These forwards contracts expire on various dates until September 30, 2023. As of December 31, 2022, the Company recorded a liability in other payables and accrued expenses on its consolidated balance sheet in the amount of $632. The Company did not hold any outstanding forward contracts as of December 31, 2021. For the year ended December 2022, 2021 and 2020, the Company recorded expenses of $318, nil and $79, respectively, in cost of revenues and $2,477, nil and $1,043, in operating expenses, respectively, related to its hedging forward contracts. The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. As of December 31, 2022, the Company expects to reclassify all of its unrealized losses from accumulated other comprehensive loss to earnings during the next twelve months. |
Employee related benefits | w. Employee related benefits: Severance pay: Effective April 1, 2007, the Company's agreements with employees in Israel, are under Section 14 of the Israeli Severance Pay Law, 1963. The Company’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based on the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay and no additional payments is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheets, as the Company is legally released from the obligation to pay severance amounts to employees once the required deposit amounts have been fully paid. For the Company's employees in Israel who are not subject to Section 14, the Company calculated the liability for severance pay pursuant to the Severance Pay Law based on the most recent salary of these employees multiplied by the number of years of employment as of the balance sheet date. The Company's liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and accruals. The value of these deposits recorded as an asset on the Company's balance sheet under other assets. The amount of accrued severance payable recorded as a liability on the Company's balance sheet under other long-term liabilities as of December 31, 2022 and 2021 is $4,663 and $4,752, respectively. Severance pay expenses for the years ended December 31, 2022, 2021 and 2020 amounted to approximately $5,369, $5,445 and $4,800, respectively. Accrued severance pay is included in other long-term liabilities in the consolidated balance sheets. |
Fair value of financial instruments | x. Fair value of financial instruments: The Company measures its cash equivalents, bank deposits, contingent consideration, derivative instruments and marketable securities at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The carrying amounts of cash equivalents, trade receivables, trade payables, short-term bank deposits, other current assets and prepaid expenses and other payables and accrued expenses, approximate at fair value because of their generally short maturities. |
Non-controlling interests | y. Non-controlling interests: Non-controlling interests of subsidiaries represents the amount of funds received in exchange for the minority rights in Skyhawk and share-based compensation expenses for equity awards of certain subsidiaries granted to employees of those subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. On January 18, 2022, the Company established Skyhawk (CNP) Security Ltd. and transferred to Skyhawk all of the intangible assets related to the Cloud Native Protector. On April 29, 2022, Skyhawk entered into Series A Preferred Share Agreement (the "Agreement"). According to the Agreement, Skyhawk issued 31,210,708 Preferred A Shares NIS 0.001 par value each for a total consideration of $35,000 representing a price per share of $1.12. Preferred Shares of Skyhawk are convertible into ordinary shares and confer upon the holders the right to receive notice to participate and vote in general meetings of Skyhawk and the right to receive dividends, if declared, in accordance with Articles of Association ("Skyhawk AoA") of Skyhawk. The Preferred Shares shall confer upon the holders' liquidation and distribution preference and anti-dilution protection in accordance with the AOA certain other rights as set forth in the investors' rights agreement, moreover, Preferred Shares shall be entitled to receive the original issue price of the respective Preferred Share. The Company has evaluated the terms of the preferred shares and classifies the non-controlling interest represented by such preferred shares as shareholders’ equity in the accompanying consolidated balance sheets. Also, since the preferred shares do not represent a residual equity interest, net losses of the Company are not allocated to the preferred shares. The Non-controlling interests presented in the Company's consolidated balance sheets as of December 31, 2022, comprise of $35,000 funds received in exchange for the non-controlling interests in Skyhawk and $1,284 share-based compensation expenses for equity awards of certain subsidiaries granted to employees of those subsidiaries. |
Comprehensive income (loss) | z. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. |
Treasury shares | aa. Treasury shares: The Company repurchases its ordinary shares from time to time on the open market and holds such shares as treasury shares. The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. The voting rights attached to treasury shares are revoked. |
Basic and diluted net income per share | ab. Basic and diluted net income (loss) per share: Basic net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus potential dilutive ordinary shares considered outstanding during the period, if any, in accordance with ASC No. 260, "Earnings Per Share". The total number of ordinary shares related to outstanding share options excluded from the calculation of diluted income (loss) per share as they would have been anti-dilutive was 4,341,401, 35,208 and 916,440 for the years ended December 31, 2022, 2021 and 2020, respectively. |
Business combinations | ac. Business combinations: The Company accounted for business combination in accordance with ASC No. 805, "Business Combinations" ("ASC 805"). Under ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business (“2017-01”), the Company first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is not a business. ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. The Company uses the Discounted Cash Flow Method to assign fair values to acquired identifiable intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, forecasted future revenue, forecasted operating results, discount rates and the appropriate weighted-average cost of capital. These estimates are inherently uncertain and unpredictable. These models are based on reasonable estimates and assumptions given available facts and circumstances, including industry estimates and averages, as of the acquisition dates and are consistent with the plans and estimates of management. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of income (loss). |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Property and Equipment Annual Depreciation Rates | % Computers, peripheral equipment and software 15 - 33 (mainly 33) Office furniture and equipment 6 - 20 (mainly 15) Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset |
Schedule of Disaggregated Revenues by Major Product Line | Year ended December 31, 2022 2021 Products $ 84,508 $ 90,292 Services 103,966 103,220 Subscriptions 104,952 92,984 $ 293,426 $ 286,496 |
Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Options | The fair value of each market-condition based RSUs and market-condition based share-options awards is estimated on the date of grant using the Monte Carlo model that uses the assumptions noted in the following table: Year ended December 31, 2022 2021 2020 Risk free interest rate 2.74%-2.75% - 0.36% Dividend yields 0% - 0% Expected volatility 27.54%- 32.88% - 24.97% Weighted average expected term from grant date (in years) 2.43-5.17 - 4 |
Employee Stock Option [Member] | |
Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Options | Year ended December 31, 2022 2021 2020 Risk free interest rate 2.72% 0.89% 0.33% Dividend yields 0% 0% 0% Expected volatility 31% 27% 26% Weighted average expected term from grant date (in years) 3.41 3.46 3.68 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Price | The acquisition was accounted for as a business combination and the purchase consideration was allocated to assets acquired and liabilities assumed based on their estimated fair values, as presented in the following table: Consideration: Cash consideration paid on closing date $ 30,000 Contingent consideration fair value 9,525 Total purchase price $ 39,525 Identifiable assets acquired: Technology $ 12,661 Goodwill 26,864 $ 39,525 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Schedule of marketable securities with contractual maturities | Debt securities with contractual maturities of less than one year are as follows: December 31, 2022 2021 Amortized Gross unrealized Gross unrealized Market Amortized Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 18,642 $ (537 ) $ - $ 18,105 $ 18,246 $ - $ 107 $ 18,353 Corporate debentures 26,639 (595 ) 31 26,075 21,050 (5 ) 99 21,144 Total marketable securities $ 45,281 $ (1,132 ) $ 31 $ 44,180 $ 39,296 $ (5 ) $ 206 $ 39,497 Debt securities with contractual maturities from one to three years are as follows: December 31, 2022 2021 Amortized Gross unrealized Gross unrealized Market Amortized Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 16,451 $ (1,018 ) $ - $ 15,433 $ 34,317 $ (304 ) $ 46 $ 34,059 Corporate debentures 77,876 (3,433 ) - 74,443 64,699 (649 ) 115 64,165 Total marketable securities $ 94,327 $ (4,451 ) $ - $ 89,876 $ 99,016 $ (953 ) $ 161 $ 98,224 Debt securities with contractual maturities of more than three years are as follows: December 31, 2022 2021 Amortized Gross unrealized Gross unrealized Market Amortized Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ - $ - $ - $ - $ - $ - $ - $ - Corporate debentures 289 (17 ) - 272 - - - - Total marketable securities $ 289 $ (17 ) $ - $ 272 $ - $ - $ - $ - |
Schedule of investments with continuous unrealized losses and related fair values | December 31, 2022 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total investments with continuous unrealized losses Fair Unrealized Fair Unrealized Fair Unrealized Value losses value losses value losses Foreign banks and government debentures $ 1,574 $ (2 ) $ 31,964 $ (1,552 ) $ 33,538 $ (1,554 ) Corporate debentures 27,677 (739 ) 69,838 (3,307 ) 97,515 (4,046 ) Total available-for-sale marketable securities $ 29,251 $ (741 ) $ 101,802 $ (4,859 ) $ 131,053 $ (5,600 ) Debt securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2021 are as follows: December 31, 2021 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total investments with continuous unrealized losses Fair Unrealized Fair Unrealized Fair Unrealized Value losses value losses value losses Foreign banks and government debentures $ 22,075 $ (202 ) $ 10,491 $ (104 ) $ 32,566 $ (306 ) Corporate debentures 49,526 (521 ) 13,903 (132 ) 63,429 (653 ) Total available-for-sale marketable securities $ 71,601 $ (723 ) $ 24,394 $ (236 ) $ 95,995 $ (959 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company's financial assets and liabilities measured at fair value on a recurring basis, including interest receivable components consisted of the following types of instruments as of December 31, 2022, and 2021: December 31, 2022 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 3,642 $ - $ - $ 3,642 Available-for-sale: Foreign banks and government debentures - 33,539 - 33,539 Corporate debentures - 100,789 - 100,789 Total financial assets $ 3,642 $ 134,328 $ - $ 137,970 Liabilities Derivative instruments $ - $ 632 $ - $ 632 Contingent consideration - - 8,281 8,281 Total financial liabilities $ - $ 632 $ 8,281 $ 8,913 December 31, 2021 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 488 $ - $ - $ 488 Marketable securities: Foreign banks and government debentures - 52,412 - 52,412 Corporate debentures - 85,309 - 85,309 Total financial assets $ 488 $ 137,721 $ - $ 138,209 |
Schedule of Changes in Level 3 Contingent Consideration Obligation Measured On Recurring Basis | The table below presents the changes in Level 3 contingent consideration obligation measured on a recurring basis and related to business combination of SecurityDAM Ltd. in February 2022: December 31, Fair value at the beginning of the year $ - Acquisition date fair value of contingent consideration related to investment in SecurityDAM Ltd. (see Note 3) 9,525 Changes in the fair value of contingent consideration in SecurityDAM Ltd. 819 Reclassification of payable related to contingent consideration to other payables and accrued expenses (see Note 10) (2,063 ) Fair value at the end of the year $ 8,281 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Current Inventories | December 31, 2022 2021 Raw materials and components $ 1,899 $ 2,028 Work-in-progress 1,004 729 Finished products 8,525 8,823 $ 11,428 $ 11,580 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | December 31, 2022 2021 Cost: Computer, peripheral equipment and software $ 108,914 $ 103,291 Office furniture and equipment 14,034 13,489 Leasehold improvements 8,185 7,493 131,133 124,273 Accumulated depreciation: Computer, peripheral equipment and software 92,918 88,323 Office furniture and equipment 11,374 10,504 Leasehold improvements 5,773 5,206 110,065 104,033 Property and equipment, net $ 21,068 $ 20,240 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Weighted average amortization December 31, period 2022 2021 (years) Cost: Acquired technology 7.6 $ 45,607 $ 32,946 Customers relationships and brand name 5.8 9,817 9,817 55,424 42,763 Accumulated amortization: Acquired technology 25,921 22,215 Customers relationships and brand name 9,817 9,817 35,738 32,032 Intangible assets, net $ 19,686 $ 10,731 |
Schedule of Future Estimated Amortization Expenses | Future estimated amortization expenses for the years ending: December 31, 2023 $ 3,968 2024 3,968 2025 3,968 2026 3,725 2027 and thereafter 4,057 Total $ 19,686 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Aggregate Lease Payments for Right of Use Assets Remaining Lease Period | Aggregate lease payments for the right of use assets over the remaining lease period as of December 31, 2022, are as follows: 2023 $ 3,987 2024 5,073 2025 4,280 2026 3,234 2027 3,003 2028 and thereafter 6,713 Total undiscounted lease payments $ 26,290 Less: adjustment to discounted lease payments (2,144 ) Total discounted lease payments $ 24,146 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | The weighted-average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2022: Weighted-average remaining lease term (years): 6.42 Weighted-average discount rate: 2.7 % The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2021: Weighted average remaining lease term (years): 7.37 Weighted average discount rate: 2.7 % |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Payables and Accrued Expenses | December 31, 2022 2021 Accrued expenses and other $ 5,067 $ 8,987 Subcontractors accrual 2,105 2,344 Accrued taxes 3,028 18,950 Contingent consideration related to acquisition 2,063 - $ 12,263 $ 30,281 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Schedule of Number of Reserved and Authorized Shares In Equity Incentive Plans | 2022 Share options exercised and outstanding 27,904,469 RSUs vested and outstanding 5,942,212 Ordinary shares available for issuance under the Equity Incentive Plans 566,286 Total reserved and authorized shares as of December 31, 2022 34,412,967 |
Schedule of Stock Option Activity | Number of Weighted- Weighted- (in years) Aggregate Outstanding at January 1, 2022 2,150,312 $ 24.17 3.39 $ 37,566 Granted 250,284 25.55 Exercised (155,406 ) 17.61 Expired (26,775 ) 21.32 Forfeited (260,386 ) 23.40 Outstanding at December 31, 2022 1,958,029 $ 25.01 3.15 $ - Exercisable at December 31, 2022 1,032,328 $ 24.29 2.41 $ - Vested and expected to vest at December 31, 2022 1,908,623 $ 24.98 3.15 $ - |
Schedule of Stock Options Outstanding by Exercise Price Range | December 31, 2022 Outstanding Exercisable Weighted average Weighted Weighted Ranges of remaining average average exercise Number of contractual exercise Number of exercise price options life (years) price options price $ 20.26-24.89 1,381,402 3.13 $ 23.22 767,214 $ 23.18 $ 25.25-29.10 370,385 2.73 $ 27.10 225,114 $ 26.59 $ 32.71-35.43 206,242 4.11 $ 33.20 40,000 $ 32.71 1,958,029 1,032,328 |
Schedule of RSU Activity | Year ended 2022 Outstanding at January 1, 2022 2,220,311 Granted 1,947,499 Vested (549,447 ) Forfeited (507,157 ) Outstanding as of December 31, 2022 3,111,206 |
Schedule of Stock-Based Compensation Expense | Year ended December 31, 2022 2021 2020 Cost of revenues $ 399 $ 236 $ 188 Research and development, net 7,215 5,412 4,409 Sales and marketing 11,196 8,811 8,315 General and administrative 7,286 3,115 3,633 Total expenses $ 26,096 $ 17,574 $ 16,545 |
Skyhawk (CNP) Security Ltd. Share Option Plan [Member] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Schedule of Stock Option Activity | Number of Weighted- Weighted- (in years) Aggregate Outstanding at January 1, 2022 - $ - - - Granted 20,467,841 0.33 Exercised - - - - Expired - - - - Forfeited (125,848 ) 0.48 - - Outstanding at December 31, 2022 20,341,993 $ 0.33 6.43 - Exercisable at December 31, 2022 - $ - - - Vested and expected to vest at December 31, 2022 20,341,993 $ 0.33 6.43 - |
Schedule of Stock-Based Compensation Expense | Year ended Cost of revenues $ - Research and development, net 77 Sales and marketing 45 General and administrative 1,135 Total expenses $ 1,257 |
EARNINGS (LOSS) PER SHARE (Tab
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule Computation of Basic and Diluted Net Earnings Per Share | Year ended December 31, 2022 2021 2020 Numerator for basic and diluted net earnings (loss) per share: Net income (loss) $ (166 ) $ 7,811 $ 9,636 Weighted average shares outstanding, net of treasury shares: Denominator for basic net earnings (loss) per share 44,943,168 45,919,835 46,460,974 Effect of dilutive securities: Employee share options and RSUs - 1,583,256 1,278,566 Denominator for diluted net earnings (loss) per share 44,943,168 47,503,091 47,739,540 Basic net earnings (loss) per share $ (0.00 ) $ 0.17 $ 0.21 Diluted net earnings (loss) per share $ (0.00 ) $ 0.16 $ 0.20 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 Beginning balance $ 5,312 $ 7,125 Decrease related to settlement with tax authorities - (4,258 ) Decrease related to expired tax years (723 ) - Additions for prior year tax positions 162 2,115 Decrease for prior year tax positions (244 ) (1,428 ) Additions for current year tax positions 2,927 1,758 Ending balance $ 7,434 $ 5,312 *) As of December 31, 2022 and 2021, unrecognized tax benefit of $1,906 and nil was presented net from deferred tax asset. |
Schedule of Taxes on Income | c. Taxes on income are comprised as follows: Year ended December 31, 2022 2021 2020 Current taxes $ 6,865 $ 18,287 $ 3,995 Deferred taxes (1,986 ) (3,466 ) 333 $ 4,879 $ 14,821 $ 4,328 Domestic $ 2,820 $ 10,741 $ 2,648 Foreign 2,059 4,080 1,680 $ 4,879 $ 14,821 $ 4,328 Year ended December 31, 2022 2021 2020 Domestic taxes: Current taxes $ 2,967 $ 12,890 $ 3,166 Deferred taxes (147 ) (2,149 ) (518 ) 2,820 10,741 2,648 Foreign taxes: Current taxes 3,898 5,397 829 Deferred taxes (1,839 ) (1,317 ) 851 2,059 4,080 1,680 $ 4,879 $ 14,821 $ 4,328 |
Schedule of Significant Components of Deferred Tax Liabilities and Assets | December 31, 2022 2021 Carryforward losses and tax credit $ 8,456 $ 9,336 Deferred revenues 6,897 5,377 Unrealized loss on marketable securities 1,281 136 ROU assets 2,289 2,372 Temporary differences 9,327 6,583 Deferred tax assets before valuation allowance 28,250 23,804 Valuation allowance (5,162 ) (2,760 ) Net deferred tax assets 23,088 21,044 Intangible assets, including goodwill (4,529 ) (4,543 ) Operating lease liabilities (2,289 ) (2,372 ) Depreciable assets (1,299 ) (1,699 ) Deferred tax liability (8,117 ) (8,614 ) Net deferred tax assets $ 14,971 $ 12,430 *) As of December 31, 2022, and 2021, unrecognized tax benefit of $1,906 and nil was presented net from deferred tax asset. |
Schedule of Reconciliation Between Theoretical and Actual Tax Expense | Year ended December 31, 2022 2021 2020 Income (loss) before taxes, as reported in the consolidated statements of income (loss) $ 4,713 $ 22,632 $ 13,964 Statutory tax rate 23 % 23 % 23 % Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate $ 1,084 $ 5,205 $ 3,212 Tax adjustment in respect of different tax rate of foreign subsidiary 48 33 (185 ) Non-deductible expenses and other permanent differences 197 305 83 Deferred taxes on losses for which valuation allowance was provided, net 2,402 896 959 Utilization of tax losses and deferred taxes for which valuation allowance was provided, net - (128 ) (152 ) Foreign withholding taxes 3,138 2,656 1,489 Share compensation relating to share options per ASC No. 718 1,517 (2,369 ) 1,258 Income taxes in respect of prior years (1,388 ) 687 292 Change of tax rate (505 ) 462 (599 ) Approved, Privileged and Preferred enterprise loss (benefits) (*) (1,457 ) 6,869 (1,844 ) Other (157 ) 205 (185 ) Actual tax expense $ 4,879 $ 14,821 $ 4,328 (*) Basic earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.03 $ 0.15 $ 0.04 Diluted earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.03 $ 0.14 $ 0.04 |
Schedule of Income Before Income Taxes | Year ended December 31, 2022 2021 2020 Domestic $ (1,105 ) $ 17,817 $ 7,751 Foreign 5,818 4,815 6,213 Income before taxes on income $ 4,713 $ 22,632 $ 13,964 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Total Revenues by Geographical Areas | Year ended December 31, 2022 2021 2020 Revenues from sales to customers located at: The United States $ 94,014 $ 98,937 $ 93,706 America - other 29,933 29,833 20,707 EMEA*) 104,219 98,388 78,362 Asia Pacific 65,260 59,338 57,252 $ 293,426 $ 286,496 $ 250,027 *) Europe, the Middle East and Africa. |
Schedule of Long-Lived Assets by Geographical Areas | December 31, 2022 2021 Long-lived assets, by geographic region: America (principally the United States) $ 1,892 $ 2,609 Israel 39,200 39,467 EMEA - other 1,039 1,201 Asia Pacific 2,016 1,792 $ 44,147 $ 45,069 |
SELECTED CONSOLIDATED STATEME_2
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | |
Schedule of Selected Statements of Income Data | Year ended December 31, 2022 2021 2020 Financial income, net: Interest on bank deposits and other $ 5,137 $ 4,131 $ 5,916 Amortization of premiums, accretion of discounts and interest on debt marketable securities, net 1,754 1,855 3,700 Gain on sale of marketable securities 68 438 639 Bank charges (207 ) (200 ) (189 ) Foreign currency differences, net 1,300 (1,817 ) (2,270 ) $ 8,052 $ 4,407 $ 7,796 |
BALANCES AND TRANSACTIONS WIT_2
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | a. The following related party balances are included in the consolidated balance sheets: December 31, 2022 2021 Trade receivables and prepaid expenses $ 745 $ 5,255 Trade payables and accrued expenses $ 1,968 $ 476 b. The following related party transactions are included in the consolidated statements of income (loss): Year ended December 31, 2022 2021 2020 Revenues (1) $ 2,327 $ 3,100 $ 3,177 Cost of revenues (2) $ 2,822 $ 11,482 $ 10,196 Operating expenses, net - primarily lease, subcontractors and communications (3) $ 8,018 $ 6,757 $ 5,201 Purchase of property and equipment $ 1,175 $ 189 $ 1,586 (1) Distribution of the Company's products by a related party on a non-exclusive basis. (2) Related to cost of product purchased from one of the related companies (SecurityDAM Ltd.). On February 17, 2022, the Company acquired all of the technology and other intangible assets from SecurityDAM Ltd., which was a related company and the sole single-managed security service provider of the company. For additional details, see Note 3. (3) The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company provides certain services to related parties. |
GENERAL - (Narrative) (Details)
GENERAL - (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 29, 2022 USD ($) | Feb. 17, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 ₪ / shares | Apr. 29, 2022 ₪ / shares | Apr. 29, 2022 USD ($) shares | |
SecurityDam Ltd [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Cash consideration | $ 30,000 | |||||
Contingent payment | $ 12,500 | |||||
Skyawk [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Cash consideration | $ 35,000 | |||||
Skyawk [Member] | Series A Preferred Stock [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Cash consideration | $ 35,000 | |||||
Contingent payment | $ 35,000 | |||||
Preferred shares issued | shares | 31,210,708 | |||||
Preferred shares par value | ₪ / shares | ₪ 0.001 | ₪ 0.001 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Apr. 29, 2022 USD ($) | Feb. 17, 2022 USD ($) | Dec. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 ₪ / shares | Dec. 31, 2022 USD ($) | Apr. 29, 2022 ₪ / shares shares | |
Inventory write-offs included in cost of revenues | $ 397 | $ 2,028 | $ 616 | |||||||
Provision for estimated sales returns, credits, stock rotations and other customer rights | $ 1,034 | 2,494 | ||||||||
Warranty term | 1 year | |||||||||
Governmental grants received | $ 1,354 | 962 | 924 | |||||||
Annual grants of restricted stock | $ 7,725 | |||||||||
Bank deposits, weighted-average duration of deposits | 1 year 4 months 9 days | |||||||||
Bank deposits, weighted-average time to maturity | 7 months 13 days | |||||||||
Bad debt expenses | $ 0 | 0 | 0 | |||||||
Derivative Liability | $ 632 | |||||||||
Outstanding currency forwards contracts | 62,200 | |||||||||
Derivative Expense Related To Cost Of Revenue | 318 | 0 | 79 | |||||||
Derivative Expense Related To Operating Expenses | 2,477 | 0 | 1,043 | |||||||
Accrued severance | 4,752 | 4,663 | ||||||||
Severance expenses | $ 5,369 | $ 5,445 | $ 4,800 | |||||||
Anti-dilutive shares excluded from computation of earnings per share amount | shares | 4,341,401 | 35,208 | 916,440 | |||||||
Share-based compensation expenses | $ 27,353 | $ 17,574 | $ 16,545 | |||||||
Amortization of deferred contract costs | 10,091 | 13,075 | ||||||||
Deferred commission costs capitalized | $ 25,517 | 23,940 | ||||||||
Deferred revenues recognized | $ 133,708 | |||||||||
Percentage of outstanding deferred revenue recognized during the period | 64% | |||||||||
Period of remaining service of deferred revenue | 5 years | |||||||||
Remaining performance obligations | 304,132 | |||||||||
Percentage of remaining performance obligation that will be recognized as revenue over the next twelve months to total remaining performance obligation as of balance sheet date | 60% | |||||||||
Expected period of benefit | 3 years 4 months 6 days | |||||||||
Other payables and accrued expenses | 150 | |||||||||
Other long-term liabilities | $ 956 | |||||||||
Subsequent Event [Member] | ||||||||||
Annual grants of restricted stock | $ 5,000 | $ 5,000 | ||||||||
SecurityDam Ltd [Member] | ||||||||||
Cash consideration | $ 30,000 | |||||||||
Skyawk [Member] | ||||||||||
Cash consideration | $ 35,000 | |||||||||
Share-based compensation expenses | $ 1,284 | |||||||||
Series A Preferred Stock [Member] | Skyawk [Member] | ||||||||||
Preferred shares issued | shares | 31,210,708 | |||||||||
Preferred shares par value | ₪ / shares | ₪ 0.001 | ₪ 0.001 | ||||||||
Cash consideration | $ 35,000 | |||||||||
Price per share | ₪ / shares | ₪ 1.12 | |||||||||
S and P rating, A- or higher [Member] | ||||||||||
Marketable securities, rating of investment portfolio percentage | 95% | |||||||||
S and P rating, BBB or BBB+ [Member] | ||||||||||
Marketable securities, rating of investment portfolio percentage | 5% | |||||||||
Israel [Member] | S and P, A Rating [Member] | ||||||||||
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 27% | |||||||||
Israel [Member] | S and P, AAA Rating [Member] | ||||||||||
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 40% | |||||||||
Israel [Member] | S and P, BBB+ Rating [Member] | ||||||||||
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 34% | |||||||||
The United States [Member] | Debt Securities [Member] | ||||||||||
Marketable securities, percentage of portfolio distribution | 64% | |||||||||
Other [Member] | Debt Securities [Member] | ||||||||||
Marketable securities, percentage of portfolio distribution | 30% | |||||||||
Minimum [Member] | ||||||||||
Finite-lived intangible assets, estimated useful lives | 6 years | |||||||||
Customer support contracts, support period | 1 year | |||||||||
Maximum [Member] | ||||||||||
Finite-lived intangible assets, estimated useful lives | 9 years | |||||||||
Customer support contracts, support period | 3 years | |||||||||
Bank deposits, maximum contractual term | 2 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment Annual Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer peripheral equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 33% |
Computer peripheral equipment and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 15% |
Computer peripheral equipment and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 33% |
Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 15% |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 6% |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 20% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation period of property and equipment | Over the shorter of the term of the lease or the useful life of the asset |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated Revenues By Major Product Line) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | |||
Total revenues | $ 293,426 | $ 286,496 | $ 250,027 |
Products [Member] | |||
Product Information [Line Items] | |||
Total revenues | 84,508 | 90,292 | |
Services [Member] | |||
Product Information [Line Items] | |||
Total revenues | 103,966 | 103,220 | |
Subscriptions [Member] | |||
Product Information [Line Items] | |||
Total revenues | $ 104,952 | $ 92,984 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.72% | 0.89% | 0.33% |
Dividend yields | 0% | 0% | 0% |
Expected volatility | 31% | 27% | 26% |
Weighted average expected term from grant date (in years) | 3 years 4 months 28 days | 3 years 5 months 15 days | 3 years 8 months 4 days |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0% | 0.36% | |
Dividend yields | 0% | 0% | 0% |
Expected volatility | 0% | 24.97% | |
Weighted average expected term from grant date (in years) | 4 years | ||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.74% | ||
Expected volatility | 27.54% | ||
Weighted average expected term from grant date (in years) | 2 years 5 months 4 days | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.75% | ||
Expected volatility | 32.88% | ||
Weighted average expected term from grant date (in years) | 5 years 2 months 1 day |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - Security Dam Ltd Member - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Feb. 17, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Cash consideration | $ 30,000 | |
Contingent payment | 12,500 | |
Contingent consideration fair value | $ 9,525 | |
Technology [Member] | ||
Business Acquisition [Line Items] | ||
Useful life | 6 years |
ACQUISITIONS (Schedule of Alloc
ACQUISITIONS (Schedule of Allocation of Purchase Price) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Feb. 17, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Identifiable assets acquired: | |||
Goodwill | $ 68,008 | $ 41,144 | |
Security Dam Ltd Member | |||
Consideration: | |||
Cash consideration paid on closing date | $ 30,000 | ||
Contingent consideration fair value | 9,525 | ||
Total purchase price | 39,525 | ||
Identifiable assets acquired: | |||
Technology | 12,661 | ||
Goodwill | 26,864 | ||
Total Identifiable assets acquired: | $ 39,525 |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Abstract] | ||
Interest receivable | $ 952 | $ 994 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Marketable Securities With Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted cost, less than one year | $ 45,281 | $ 39,296 |
Gross unrealized losses, less than one year | (1,132) | (5) |
Gross unrealized gains, less than one year | 31 | 206 |
Market Value, less than one year | 44,180 | 39,497 |
Adjusted cost, over one year through three years | 94,327 | 99,016 |
Gross unrealized losses, over one year through three years | (4,451) | (953) |
Gross unrealized gains, over one through three years | 0 | 161 |
Market Value, over one year through three years | 89,876 | 98,224 |
Adjusted cost, greater than three years | 289 | 0 |
Gross unrealized losses, greater than three years | (17) | 0 |
Gross unrealized gains, greater than three years | 0 | 0 |
Market value, greater than three years | 272 | 0 |
Foreign banks and government debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted cost, less than one year | 18,642 | 18,246 |
Gross unrealized losses, less than one year | (537) | 0 |
Gross unrealized gains, less than one year | 0 | 107 |
Market Value, less than one year | 18,105 | 18,353 |
Adjusted cost, over one year through three years | 16,451 | 34,317 |
Gross unrealized losses, over one year through three years | (1,018) | (304) |
Gross unrealized gains, over one through three years | 0 | 46 |
Market Value, over one year through three years | 15,433 | 34,059 |
Adjusted cost, greater than three years | 0 | 0 |
Gross unrealized losses, greater than three years | 0 | 0 |
Gross unrealized gains, greater than three years | 0 | 0 |
Market value, greater than three years | 0 | 0 |
Corporate debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted cost, less than one year | 26,639 | 21,050 |
Gross unrealized losses, less than one year | (595) | (5) |
Gross unrealized gains, less than one year | 31 | 99 |
Market Value, less than one year | 26,075 | 21,144 |
Adjusted cost, over one year through three years | 77,876 | 64,699 |
Gross unrealized losses, over one year through three years | (3,433) | (649) |
Gross unrealized gains, over one through three years | 0 | 115 |
Market Value, over one year through three years | 74,443 | 64,165 |
Adjusted cost, greater than three years | 289 | 0 |
Gross unrealized losses, greater than three years | (17) | 0 |
Gross unrealized gains, greater than three years | 0 | 0 |
Market value, greater than three years | $ 272 | $ 0 |
MARKETABLE SECURITIES (Summary
MARKETABLE SECURITIES (Summary of Investments With Continuous Unrealized Losses and Related Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | $ 29,251 | $ 71,601 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (741) | (723) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 101,802 | 24,394 |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | (4,859) | (236) |
Total investments with continuous unrealized losses, Fair value | 131,053 | 95,995 |
Total investments with continuous unrealized losses, unrealized losses | (5,600) | (959) |
Foreign banks and government debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 1,574 | 22,075 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (2) | (202) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 31,964 | 10,491 |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | (1,552) | (104) |
Total investments with continuous unrealized losses, Fair value | 33,538 | 32,566 |
Total investments with continuous unrealized losses, unrealized losses | (1,554) | (306) |
Corporate debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 27,677 | 49,526 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (739) | (521) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 69,838 | 13,903 |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | (3,307) | (132) |
Total investments with continuous unrealized losses, Fair value | 97,515 | 63,429 |
Total investments with continuous unrealized losses, unrealized losses | $ (4,046) | $ (653) |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Fair value of contingent consideration | $ 8,281 | $ 0 |
Minimum contingent consideration discount rate | 9.32% | |
Maximum contingent consideration discount rate | 10.40% |
FAIR VALUE MEASUREMENTS (Financ
FAIR VALUE MEASUREMENTS (Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets [Abstract] | ||
Total financial assets | $ 137,970 | $ 138,209 |
Liabilities [Abstract] | ||
Derivative instruments | 632 | |
Contingent consideration | 8,281 | |
Total liabilities | 8,913 | |
Money Market Funds [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 3,642 | 488 |
Available-for-sale: Foreign banks and government debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 33,539 | 52,412 |
Available-for-sale: Corporate debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 100,789 | 85,309 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Total financial assets | 3,642 | 488 |
Liabilities [Abstract] | ||
Derivative instruments | 0 | |
Contingent consideration | 0 | |
Total liabilities | 0 | |
Level 1 [Member] | Money Market Funds [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 3,642 | 488 |
Level 1 [Member] | Available-for-sale: Foreign banks and government debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 0 | 0 |
Level 1 [Member] | Available-for-sale: Corporate debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Total financial assets | 134,328 | 137,721 |
Liabilities [Abstract] | ||
Derivative instruments | 632 | |
Contingent consideration | 0 | |
Total liabilities | 632 | |
Level 2 [Member] | Money Market Funds [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Level 2 [Member] | Available-for-sale: Foreign banks and government debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 33,539 | 52,412 |
Level 2 [Member] | Available-for-sale: Corporate debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 100,789 | 85,309 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Total financial assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative instruments | 0 | |
Contingent consideration | 8,281 | |
Total liabilities | 8,281 | |
Level 3 [Member] | Money Market Funds [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Level 3 [Member] | Available-for-sale: Foreign banks and government debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | 0 | 0 |
Level 3 [Member] | Available-for-sale: Corporate debentures [Member] | ||
Assets [Abstract] | ||
Marketable securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Changes in Level 3 Contingent Consideration Obligation Measured) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value at the beginning of the year | $ 0 |
Acquisition date fair value of contingent consideration related to investment in SecurityDAM Ltd. | 9,525 |
Changes in the fair value of contingent consideration in SecurityDAM Ltd. | 819 |
Reclassification of payable related to contingent consideration to other payables and accrued expenses | (2,063) |
Fair value at the end of the year | $ 8,281 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and components | $ 1,899 | $ 2,028 |
Work-in-progress | 1,004 | 729 |
Finished products | 8,525 | 8,823 |
Inventory, Total | $ 11,428 | $ 11,580 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 131,133 | $ 124,273 | |
Accumulated depreciation | 110,065 | 104,033 | |
Property and equipment, net | 21,068 | 20,240 | |
Depreciation expenses | 7,986 | 8,339 | $ 8,666 |
Computer, peripheral equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 108,914 | 103,291 | |
Accumulated depreciation | 92,918 | 88,323 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 14,034 | 13,489 | |
Accumulated depreciation | 11,374 | 10,504 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,185 | 7,493 | |
Accumulated depreciation | $ 5,773 | $ 5,206 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 3,706 | $ 1,857 | $ 1,893 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost of intangible assets | $ 55,424 | $ 42,763 |
Accumulated amortization | 35,738 | 32,032 |
Intangible assets, net | 19,686 | 10,731 |
Acquired technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost of intangible assets | 45,607 | 32,946 |
Accumulated amortization | $ 25,921 | 22,215 |
Weighted average amortization period (years) | 7 years 7 months 6 days | |
Customers relationships brand name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost of intangible assets | $ 9,817 | 9,817 |
Accumulated amortization | $ 9,817 | $ 9,817 |
Weighted average amortization period (years) | 5 years 9 months 18 days |
INTANGIBLE ASSETS, NET (Future
INTANGIBLE ASSETS, NET (Future Estimated Amortization Expenses) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 3,968 |
2024 | 3,968 |
2025 | 3,968 |
2026 | 3,725 |
2027 and thereafter | 4,057 |
Total | $ 19,686 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Total rent expenses | $ 6,856 | $ 6,193 | $ 5,955 |
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease expired | Dec. 31, 2030 |
LEASES (Schedule of Aggregate L
LEASES (Schedule of Aggregate Lease Payments for Right of Use Assets Remaining Lease Period) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 3,987 |
2024 | 5,073 |
2025 | 4,280 |
2026 | 3,234 |
2027 | 3,003 |
2028 and thereafter | 6,713 |
Total undiscounted lease payments | 26,290 |
Less: adjustment to discounted lease payments | (2,144) |
Total discounted lease payments | $ 24,146 |
LEASES (Schedule of Weighted Av
LEASES (Schedule of Weighted Average Remaining Lease Terms and Discount Rates) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 6 years 5 months 1 day | 7 years 4 months 13 days |
Weighted average discount rate | 2.70% | 2.70% |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses and other | $ 5,067 | $ 8,987 |
Subcontractors accrual | 2,105 | 2,344 |
Accrued taxes | 3,028 | 18,950 |
Contingent consideration related to acquisition | 2,063 | 0 |
Total other payables and accrued expenses | $ 12,263 | $ 30,281 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Percentage of revenue | 100% |
Annual interest rate of royalties | 3% |
Payments for Royalties | $ 333 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Feb. 28, 2021 | May 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation costs | $ 5,941 | ||||||
Unrecognized compensation costs, period of recognition | 1 year 7 months 9 days | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Stock Option Plans [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary shares reserved for future issuance | 34,412,967 | ||||||
In-the-money options outstanding | 2,150,312 | 1,958,029 | |||||
Intrinsic value of options exercised | $ 1,894 | $ 14,003 | $ 13,335 | ||||
Weighted-average grant-date fair value of options granted | $ 6.77 | $ 6.87 | $ 4.74 | ||||
Total unrecognized compensation costs | $ 4,091 | ||||||
Unrecognized compensation costs, period of recognition | 1 year 7 months 9 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Total unrecognized compensation costs | $ 60,405 | ||||||
Unrecognized compensation costs, period of recognition | 1 year 8 months 8 days | ||||||
Weighted average fair value at grant date of non-vested shares | $ 21.31 | 32.57 | 22.54 | ||||
Weighted average fair value at grant date of vested shares | 23.65 | 21.77 | 18.18 | ||||
Weighted average fair value at grant date of forfeited shares | $ 22.88 | $ 24.32 | $ 23.24 | ||||
Treasury stock, at cost [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchase of shares, authorized amount | $ 80,000 | $ 80,000 | $ 56,800 | ||||
Additional amount increase in plan 2022 | $ 20,000 | ||||||
Total amount increase in plan 2022 | $ 100,000 | ||||||
Sharebased payment award expiration period | Oct. 31, 2023 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Number of Reserved and Authorized Shares in Equity Incentive Plans) (Details) | Dec. 31, 2022 shares |
Stockholders' Equity Note [Abstract] | |
Share options exercised and outstanding | 27,904,469 |
RSUs vested and outstanding | 5,942,212 |
Ordinary shares available for issuance under the Equity Incentive Plans | 566,286 |
Total reserved and authorized shares as of December 31, 2022 | 34,412,967 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options [Member] | ||
Number of options | ||
Outstanding at January 1, 2022 | 2,150,312 | |
Granted | 250,284 | |
Exercised | (155,406) | |
Expired | (26,775) | |
Forfeited | (260,386) | |
Outstanding at December 31, 2022 | 1,958,029 | 2,150,312 |
Exercisable at December 31, 2022 | 1,032,328 | |
Vested and expected to vest at December 31, 2022 | 1,908,623 | |
Weighted-average exercise price | ||
Outstanding at January 1, 2022 | $ 24.17 | |
Granted | 25.55 | |
Exercised | 17.61 | |
Expired | 21.32 | |
Forfeited | 23.4 | |
Outstanding at December 31, 2022 | 25.01 | $ 24.17 |
Exercisable at December 31, 2022 | 24.29 | |
Vested and expected to vest at December 31, 2022 | $ 24.98 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Remaining Contractual Term Roll Forward | ||
Outstanding | 3 years 1 month 24 days | 3 years 4 months 20 days |
Exercisable at December 31, 2022 | 2 years 4 months 28 days | |
Vested and expected to vest at December 31, 2022 | 3 years 1 month 24 days | |
Aggregate intrinsic value | ||
Outstanding at December 31, 2022 | $ 0 | $ 37,566 |
Exercisable at December 31, 2022 | 0 | |
Vested and expected to vest at December 31, 2022 | $ 0 | |
Skyhawk Cnp Security Ltd Share Option Plan [Member] | ||
Number of options | ||
Outstanding at January 1, 2022 | 0 | |
Granted | 20,467,841 | |
Exercised | 0 | |
Expired | 0 | |
Forfeited | (125,848) | |
Outstanding at December 31, 2022 | 20,341,993 | 0 |
Exercisable at December 31, 2022 | 0 | |
Vested and expected to vest at December 31, 2022 | 20,341,993 | |
Weighted-average exercise price | ||
Outstanding at January 1, 2022 | $ 0 | |
Granted | 0.33 | |
Exercised | 0 | |
Expired | 0 | |
Forfeited | 0.48 | |
Outstanding at December 31, 2022 | 0.33 | $ 0 |
Exercisable at December 31, 2022 | 0 | |
Vested and expected to vest at December 31, 2022 | $ 0.33 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Remaining Contractual Term Roll Forward | ||
Outstanding | 6 years 5 months 4 days | |
Vested and expected to vest at December 31, 2022 | 6 years 5 months 4 days | |
Aggregate intrinsic value | ||
Outstanding at December 31, 2022 | $ 0 | $ 0 |
Exercisable at December 31, 2022 | 0 | |
Vested and expected to vest at December 31, 2022 | $ 0 |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary of Stock Options Outstanding by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Outstanding | |
Number of options | shares | 1,958,029 |
Exercisable | |
Number of options | shares | 1,032,328 |
$20.26-24.89 [Member] | |
Outstanding | |
Ranges of exercise price, Lower limit | $ 20.26 |
Ranges of exercise price, Upper limit | $ 24.89 |
Number of options | shares | 1,381,402 |
Weighted average remaining contractual life (years) | 3 years 1 month 17 days |
Weighted average exercise price | $ 23.22 |
Exercisable | |
Number of options | shares | 767,214 |
Weighted average exercise price | $ 23.18 |
$25.25-29.10 [Member] | |
Outstanding | |
Ranges of exercise price, Lower limit | 25.25 |
Ranges of exercise price, Upper limit | $ 29.1 |
Number of options | shares | 370,385 |
Weighted average remaining contractual life (years) | 2 years 8 months 23 days |
Weighted average exercise price | $ 27.1 |
Exercisable | |
Number of options | shares | 225,114 |
Weighted average exercise price | $ 26.59 |
$32.71-35.43 [Member] | |
Outstanding | |
Ranges of exercise price, Lower limit | 32.71 |
Ranges of exercise price, Upper limit | $ 35.43 |
Number of options | shares | 206,242 |
Weighted average remaining contractual life (years) | 4 years 1 month 9 days |
Weighted average exercise price | $ 33.2 |
Exercisable | |
Number of options | shares | 40,000 |
Weighted average exercise price | $ 32.71 |
SHAREHOLDERS' EQUITY (Summary_3
SHAREHOLDERS' EQUITY (Summary of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 1, 2022 | 2,220,311 |
Granted | 1,947,499 |
Vested | (549,447) |
Forfeited | (507,157) |
Outstanding as of December 31, 2022 | 3,111,206 |
SHAREHOLDERS' EQUITY (Summary_4
SHAREHOLDERS' EQUITY (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 26,096 | $ 17,574 | $ 16,545 |
Skyhawk (CNP) Security Ltd. Share Option Plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 1,257 | ||
Cost of revenues [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 399 | 236 | 188 |
Cost of revenues [Member] | Skyhawk (CNP) Security Ltd. Share Option Plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 0 | ||
Research and development [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 7,215 | 5,412 | 4,409 |
Research and development [Member] | Skyhawk (CNP) Security Ltd. Share Option Plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 77 | ||
Selling and marketing [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 11,196 | 8,811 | 8,315 |
Selling and marketing [Member] | Skyhawk (CNP) Security Ltd. Share Option Plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 45 | ||
General and administrative [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 7,286 | $ 3,115 | $ 3,633 |
General and administrative [Member] | Skyhawk (CNP) Security Ltd. Share Option Plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 1,135 |
EARNINGS (LOSS) PER SHARE (Det
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for basic and diluted net earnings (loss) per share: | |||
Net income (loss) | $ (166) | $ 7,811 | $ 9,636 |
Weighted average shares outstanding, net of treasury shares: | |||
Denominator for basic net earnings (loss) per share | 44,943,168 | 45,919,835 | 46,460,974 |
Effect of dilutive securities: | |||
Employee share options and RSUs | 0 | 1,583,256 | 1,278,566 |
Denominator for diluted net earnings (loss) per share | 44,943,168 | 47,503,091 | 47,739,540 |
Basic net earnings (loss) per share | $ 0 | $ 0.17 | $ 0.21 |
Diluted net earnings (loss) per share | $ 0 | $ 0.16 | $ 0.2 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) ₪ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 22, 2017 | Dec. 31, 2022 ILS (₪) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||||
Unrecognized tax benefit | $ 1,906 | $ 0 | |||||
Amount added (deducted) to unrecognized tax benefits derived from interest and exchange | 236 | 243 | $ 657 | ||||
Accrued interest liability on uncertain tax positions | 390 | $ 97 | |||||
Settlement amount payment | 9,279 | ||||||
Outstanding provision for the amounts paid to the ITA, reversed upon payment | 4,258 | ||||||
Additional deductible expenses | $ 5,190 | ||||||
Tax rate | 23% | 23% | 23% | 23% | |||
Operating loss carryforward amount | $ 11,170 | ||||||
Recognition deferred tax rate | 34% | 34% | |||||
Recognition deferred benefit | $ 1,698 | ||||||
Dividend withholding tax percentage | 15% | 15% | |||||
Tax payable | $ 8,247 | ||||||
Minimum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Open tax year | 2015 | 2015 | |||||
Tax rate | 21% | ||||||
Maximum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Open tax year | 2021 | 2021 | |||||
Tax rate | 35% | ||||||
ILS [Member] | |||||||
Income Taxes [Line Items] | |||||||
Settlement amount payment | ₪ | ₪ 28,858 | ||||||
United States Subsidiary [Member] | Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward amount | $ 3,507 | ||||||
Operating loss carry forward expiration term | 20 years | 20 years | |||||
United States Subsidiary [Member] | Foreign [Member] | Earliest Tax Year [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward expiration date | Dec. 31, 2023 | ||||||
United States Subsidiary [Member] | Foreign [Member] | Latest Tax Year [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward expiration date | Dec. 31, 2038 | ||||||
Preferred Technological Enterprise [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax rate | 23% | ||||||
Preferred Enterprise Regime [Member] | Minimum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Withholding tax | 15% | 15% | |||||
Preferred Enterprise Regime [Member] | Maximum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Withholding tax | 20% | 20% | |||||
Development Zone A [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax rate | 9% | 9% | 7.50% | 9% | |||
Development Zone A [Member] | Technological Preferred Enterprise [Member] | Parent Subsidiary [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax rate | 7.50% | 7.50% | |||||
Elsewhere In Israel [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax rate | 16% | 16% | |||||
Elsewhere In Israel [Member] | Technological Preferred Enterprise [Member] | Parent Subsidiary [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax rate | 12% | 12% |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 5,312 | $ 7,125 |
Decrease related to settlement with tax authorities | 0 | (4,258) |
Decrease related to expired tax years | (723) | 0 |
Additions for prior year tax positions | 162 | 2,115 |
Decrease for prior year tax positions | (244) | (1,428) |
Additions for current year tax positions | 2,927 | 1,758 |
Ending balance | $ 7,434 | $ 5,312 |
TAXES ON INCOME (Summary of Tax
TAXES ON INCOME (Summary of Taxes On Income Summary) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 6,865 | $ 18,287 | $ 3,995 |
Deferred taxes | (1,986) | (3,466) | 333 |
Taxes on income | 4,879 | 14,821 | 4,328 |
Domestic | 2,820 | 10,741 | 2,648 |
Foreign | 2,059 | 4,080 | 1,680 |
Taxes on income | $ 4,879 | $ 14,821 | $ 4,328 |
TAXES ON INCOME (Summary of T_2
TAXES ON INCOME (Summary of Taxes On Income By Jurisdiction) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic taxes: Current taxes | $ 2,967 | $ 12,890 | $ 3,166 |
Domestic taxes: Deferred taxes | (147) | (2,149) | (518) |
Domestic | 2,820 | 10,741 | 2,648 |
Foreign taxes: Current taxes | 3,898 | 5,397 | 829 |
Foreign taxes: Deferred taxes | (1,839) | (1,317) | 851 |
Foreign | 2,059 | 4,080 | 1,680 |
Taxes on income | $ 4,879 | $ 14,821 | $ 4,328 |
TAXES ON INCOME (Significant Co
TAXES ON INCOME (Significant Components of Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Carryforward losses and tax credit | $ 8,456 | $ 9,336 |
Deferred revenues | 6,897 | 5,377 |
Unrealized loss on marketable securities | 1,281 | 136 |
ROU assets | 2,289 | 2,372 |
Temporary differences | 9,327 | 6,583 |
Deferred tax assets before valuation allowance | 28,250 | 23,804 |
Valuation allowance | (5,162) | (2,760) |
Net deferred tax assets | 23,088 | 21,044 |
Intangible assets, including goodwill | (4,529) | (4,543) |
Operating lease liabilities | (2,289) | (2,372) |
Depreciable assets | (1,299) | (1,699) |
Deferred tax liability | (8,117) | (8,614) |
Net deferred tax assets | $ 14,971 | $ 12,430 |
TAXES ON INCOME (Reconciliati_2
TAXES ON INCOME (Reconciliation Between Theoretical and Actual Tax Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Tax Disclosure [Abstract] | ||||
Income (loss) before taxes, as reported in the consolidated statements of income (loss) | $ 4,713 | $ 22,632 | $ 13,964 | |
Statutory tax rate | 23% | 23% | 23% | |
Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate | $ 1,084 | $ 5,205 | $ 3,212 | |
Tax adjustment in respect of different tax rate of foreign subsidiary | 48 | 33 | (185) | |
Non-deductible expenses and other permanent differences | 197 | 305 | 83 | |
Deferred taxes on losses for which valuation allowance was provided, net | 2,402 | 896 | 959 | |
Utilization of tax losses and deferred taxes for which valuation allowance was provided, net | (128) | (152) | ||
Foreign withholding taxes | 3,138 | 2,656 | 1,489 | |
Stock compensation relating to stock options per ASC No. 718 | 1,517 | (2,369) | 1,258 | |
Income taxes in respect of prior years | (1,388) | 687 | 292 | |
Change of tax rate | (505) | 462 | (599) | |
Approved, Privileged and Preferred enterprise loss (benefits) | [1] | (1,457) | 6,869 | (1,844) |
Other | (157) | 205 | (185) | |
Taxes on income | $ 4,879 | $ 14,821 | $ 4,328 | |
Basic earnings per share amounts of the benefit resulting from the “Approved, Privileged and Preferred Enterprise” status | $ 0.03 | $ 0.15 | $ 0.04 | |
Diluted earnings per share amounts of the benefit resulting from the “Approved, Privileged and Preferred Enterprise” status | $ 0.03 | $ 0.14 | $ 0.04 | |
[1]Basic earnings per share amounts of the benefit resulting from the “Approved, Privileged and Preferred Enterprise” status |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income (Loss) Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (1,105) | $ 17,817 | $ 7,751 |
Foreign | 5,818 | 4,815 | 6,213 |
Income before taxes on income | $ 4,713 | $ 22,632 | $ 13,964 |
GEOGRAPHIC INFORMATION (Schedul
GEOGRAPHIC INFORMATION (Schedule of Total Revenues by Geograpical Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 293,426 | $ 286,496 | $ 250,027 | |
The United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 94,014 | 98,937 | 93,706 | |
America - other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 29,933 | 29,833 | 20,707 | |
EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [1] | 104,219 | 98,388 | 78,362 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 65,260 | $ 59,338 | $ 57,252 | |
[1]Europe, the Middle East and Africa. |
GEOGRAPHIC INFORMATION (Sched_2
GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets by Geograpical Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 44,147 | $ 45,069 |
America (principally the United States) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,892 | 2,609 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 39,200 | 39,467 |
EMEA - other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,039 | 1,201 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,016 | $ 1,792 |
SELECTED CONSOLIDATED STATEME_3
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial income, net: | |||
Interest on bank deposits and other | $ 5,137 | $ 4,131 | $ 5,916 |
Amortization of premiums, accretion of discounts and interest on debt marketable securities, net | 1,754 | 1,855 | 3,700 |
Gain on sale of marketable securities | 68 | 438 | 639 |
Bank charges | (207) | (200) | (189) |
Foreign currency differences, net | 1,300 | (1,817) | (2,270) |
Financial income, net | $ 8,052 | $ 4,407 | $ 7,796 |
BALANCES AND TRANSACTIONS WIT_3
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Schedule of Related Party Balances Per the Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Trade receivables and prepaid expenses | $ 745 | $ 5,255 |
Trade payables and accrued expenses | $ 1,968 | $ 476 |
BALANCES AND TRANSACTIONS WIT_4
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Schedule of Related Party Balances Per the Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Related Party Transactions [Abstract] | ||||
Revenues | [1] | $ 2,327 | $ 3,100 | $ 3,177 |
Cost of revenues | [2] | 2,822 | 11,482 | 10,196 |
Operating expenses, net - primarily lease, subcontractors and communications | [3] | 8,018 | 6,757 | 5,201 |
Purchase of property and equipment | $ 1,175 | $ 189 | $ 1,586 | |
[1]Distribution of the Company’s products on a non-exclusive basis.[2]Related to cost of product purchased from one of the related companies (SecurityDAM Ltd.). On February 17, 2022, the Company acquired all of the technology and other intangible assets from SecurityDAM Ltd., which was a related company and the sole single-managed security service provider of the company. For additional details, see Note 3.[3]The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company provides certain services to related parties. |